Indian Oil Corporation Limited (IndianOil) has successfully liquidated Rs. 806 crore worth of oil bonds maturing in 2021 and 2023 in the secondary market trade. The sale was concluded today through book building route. The issue generated a very good response despite the constant strain on liquidity currently in the money markets. The yields and short-term interest rates have elevated post the announcement of CRR (cash reserve ratio) hike of 50 basis points by RBI. The arrangers to the issue were M/s. Darashaw, M/s. IDBI Capital, M/s. RR Financials, M/s. ICICI Securities Ltd. and M/s. UTI Bank Ltd.

The Government of India had issued oil bonds worth Rs. 7,168 crore maturing after 15 to 17 years to IndianOil in the current financial year in lieu of the under-recoveries suffered by the oil companies on the sale of LPG & SKO. IndianOil has liquidated oil bonds of about Rs. 6,000 crore of varying maturities (including the current sale) in the secondary market during the current fiscal.

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