By IANS,
Mumbai : State-run energy major Indian Oil Corp (IOC) Tuesday said it was planning to raise $500 million from overseas to finance its capital expenditure.
The company will issue foreign currency bonds with a coupon rate of 4.75 percent and a five-year term. The bonds will be listed on the Singapore Stock Exchange.
The finance ministry has disbursed Rs.7,000 crore to the IOC for selling the products at a subsidised rate. About Rs.12,000 crore was received by the oil marketing companies as compensation.
The three major oil marketing companies IOC, Bharat Petroleum Corporation and Hindustan Petroleum Corporation are projected to lose about Rs.29,000 crore this fiscal, owing to the oil subsidy.
The IOC scrip rose 2.84 percent to Rs.334.50 earlier in the day and settled down to Rs.328, a little before noon.