News Release Details

IndianOil’s Foreign Currency Loan Portfolio breaches USD 6 Billion Mark
New Delhi   01-Mar-2012

IndianOil, India’s largest commercial enterprise, has built up a foreign currency loan portfolio of USD 6 billion. This portfolio consists of about USD 2 billion of long term foreign currency funds and about USD 4 billion worth short term foreign currency funds lent to IndianOil by various banks across the world. This size of foreign currency loan portfolio reflects IndianOil’s strong positioning in the global money market and is even more significant given the current uncertain scenario in the global financial system that has impacted the lending capabilities of banks.

It is noteworthy that during the current fiscal, IndianOil raised USD 500 million through international bonds in August 2011 and USD 250 million through a syndicated loan facility in December 2011.

Though foreign currency loans are available at substantially cheaper rates, their availment is preceded by rigorous due diligence by foreign banks and finalisation of complex loan agreements. It may be worthwhile to mention that due to significant interest rate differentials over the domestic funds, Indian corporates have been vying hard to garner more of foreign currency funds. However, IndianOil has been successful in leveraging its strength in the international market to raise foreign currency loans at attractive rates to finance its capital expenditure and working capital requirements.