Millennium Post

IndianOil sets bonds in Singapore dollar

IndianOil, the largest commercial enterprise in India, became the first Indian corporate to successfully price long term bonds denominated in Singapore Dollars [SGD]. The Company had earlier issued bonds denominated in USD in the international markets and the 10 year SGD 400 million bond issue has become a landmark deal adding diversity to IndianOil’s debt portfolio.

P K Go yal director [Finance], IndianOil, speaking on the successful deal, said that considering the overwhelming response from investors in terms of tight pricing and substantially oversubscribed book, the issue size was increased to SGD 400 million from the originally planned SGD 300 million.

This benchmark deal has achieved many milestones, being the largest SGD offering by any foreign corporate issuer this year, the largest ever SGD issuance by an Indian issuer and the longest tenor senior note in SGD market by a foreign issuer this year.  The book building for deal was announced on 4 October 2012 on the back of a highly successful one day road show in Singapore, which was attended by over 50 prospective investors including Private Banks, Fund Managers, Banks etc.  The announcement saw orders to the tune of SGD 300 million within half an hour. Based on the overwhelming response at initial stage, investors started pouring in and by 4.00 pm the book had already touched the SGD 3 billion mark i.e. 7.5x of SGD 400 million, the amount finally retained by IndianOil.  

The book consisted of orders from over 100 investors and the profile included Fund Managers [22%], Banks [18%] and Private Banks [60%]. In terms of geography, 75% orders came from Singapore and 25% from rest of Asia .

 The overwhelming response to IndianOil’s SGD bonds has not only reconfirmed the confidence of international investors in the credit credentials of the company but has also paved the way for other Indian corporates to tap Singapore market for their long term financing needs.
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