IOC Mops Up $300Mn From US To Fund Expansion

Mumbai: Indian Oil Corporation, the nation''s biggest refiner, raised $300 million by selling bonds to select investors in the US to partially fund new plants. The money was raised from 13 investors. Bank of America and Citigroup managed the fund-raising. The oil major took up $100 million more from an initial plan to mop up $200 million because an overwhelming response was received from investors. The state-run refiner mulls to increase spending by 61 per cent to Rs 6,000 crore ($1.5 billion) this year on expansion, comprising increasing capacities of its refineries and construction of a chemical plant. The refiner plans to invest Rs 2,869 on upgrading and expanding its plant in Haldia in eastern India. The bonds were sold at a fixed rate of interest on an unsecured basis with an average maturity of about 10 years.