HCPL raises US$500 mn, ventures into the international bond

Hindustan Petroleum raised 10-year fixed rate unsecured US$500 million bonds from overseas investors to fund capital expenditure for ongoing and future domestic projects, according to the company.

This is company’s first venture into the international bond market. The 10-year benchmark has a semi-annual coupon of 4% per annum, and a maturity date of 12 July 2027. It offers investors a spread of 167.5 basis points over the US Treasury yield. There were orders for more than US$3 billion with over 225 investors consisting of very high quality accounts, the company said.

“It underscores investor’s confidence in HPCL and establishes HPCL as one of the sought-after Indian state-owned enterprises credit in the international bond markets,” Mukesh Kumar Surana, Chairman and Managing Director, HPCL said.

The notes were rated Baa3 by Moody’s and BBB- by Fitch. The notes will be listed on the Singapore Exchange Securities Trading Limited, HPCL said.

For the issue, Citigroup, DBS Bank Ltd., MUFG, SBICAP and Standard Chartered Bank were joint book runners and joint lead managers.