OREANDA-NEWS. Indian Oil Corporation Limited, on 23rd July 2013, priced USD 500 million bonds for a tenor of ten years under Regulation S format. This was IndianOil's fourth international bond in last three and half years.

During the Federal Open Market Committee on 19th June 2013, it was indicated that US Fed would moderate the asset purchase based on improvement in US economy. These indications were not taken favorably and markets went into sell off mode. Considering the market conditions, IndianOil realigned its strategy of bond issuance and postponed its investor meetings and pricing from first week of July 2013 to second and third week of July 2013 so that markets could cool off and investors’ appetite for investment could resurface as they needed capital deployment after sell off.

The above strategy worked as after the successful investor meetings in Singapore, Hong Kong and London, IOC priced the bonds aggressively without any new issue premium.

The order book was of about USD 3.5 billion and consisted of orders from over 400 investors and investors’ type included Fund Managers (64%), Banks (17%), Insurance & Sovereign Wealth Funds (11%) and Private Banks (8%). In terms of geography, 73% orders came from Asia, while Europe / Middle East and US Off shore contributed 25% and 2 % respectively.

The overwhelming response to IndianOil's bonds has reconfirmed the confidence of international investors in the credit credentials of IndianOil.