indian-oil-issues-500-million-debut-fiveyear-bond

Indian Oil issues $500 million debut five-year bond

Asia's first corporate bond issue this year is expected to be followed as early as this week by a Vietnam sovereign, while Evergrande Real Estate and PT Cikarang Listrindo are also on the road.
 An oil refinery at dawn
An oil refinery at dawn

Indian Oil Corporation IOC early Friday morning completed the sale of its first international bond, following a three-day roadshow through Singapore, Hong Kong and London. Arrangers for the $500 million Reg-S issue were Deutsche Bank, HSBC and Standard Chartered, which secured a total order book of $6.5 billion from 275 investor accounts.

The issue pays a coupon of 4.75% and was re-offered at 99.692 to yield 4.82% to a maturity date of January 22, 2015. The price equalled a spread of 205bp over mid-swaps, or 233bp over the yield of the five-year benchmark US Treasury.

Written into the term sheet was an event of default EOD clause, which will be triggered if the Indian...

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