homefinance NewsHPCL raises Rs 2,000 cr debt to fund its current year capital expenditure

HPCL raises Rs 2,000 cr debt to fund its current year capital expenditure

IOC on Thursday informed stock exchanges that its Board of Directors would on October 30 consider approving borrowings up to Rs 20,000 crore during a financial year through a private placement of bonds/ debentures in one or more tranches.

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By PTI Oct 23, 2020 6:28:22 PM IST (Updated)

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HPCL raises Rs 2,000 cr debt to fund its current year capital expenditure
Hindustan Petroleum Corp Ltd (HPCL) on Friday said it had raised Rs 2,000 crore in debt for funding its capital expenditure during the current year.

In a stock exchange filing, HPCL said it has "issued un-secured, redeemable, non-convertible, non-cumulative, taxable, debenture of Rs 10 lakh each aggregating to Rs 2,000 crores on private placement basis for funding of capital expenditure, including recoupment of expenditure already incurred."
The coupon rate will be 4.79 percent per annum for the debt instruments, which will mature on October 23, 2023.
HPCL debt raising follows similar moves Indian Oil Corp (IOC) and Oil and Natural Gas Corp (ONGC) earlier this week.
IOC raised Rs 2,000 crore through non-convertible debentures or NCDs on a private placement basis for the refinancing of existing borrowing and funding of capital expenditure.
ONGC said it raised Rs 1,140 crore through a three-year debenture issue on a private placement basis at an interest rate of 4.64 percent per annum payable annually.
IOC on Thursday informed stock exchanges that its Board of Directors would on October 30 consider approving borrowings up to Rs 20,000 crore during a financial year through a private placement of bonds/ debentures in one or more tranches.
This will be within the overall borrowing limit of Rs 1,65,000 crore approved by shareholders at the last Annual General Meeting.

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