Oil India to take external commercial loan route to raise $550 million loans to fund expansion
"The loan will be priced 110 basis points above the six-month SOFR rate with a reset clause after every six months linked to the then prevailing SOFR rate," said a person familiar with the deal. One basis point is 0.01 percentage point. The six-month SOFR is around 5.39%. The final pricing of deal is likely to be around 6.49%. Bank of Baroda has agreed to underwrite the whole amount initially with a possibility of a loan syndication after a few months.
Mumbai: , the country's second-biggest state-owned oil and gas explorer, is set to raise $550 million in a five-year facility through (BoB) to fund expansion into , , , and and run its operations. The five-year loan will be linked to the six-month benchmark secured overnight financing rate (SOFR)."The loan will be priced 110 basis points above the six-month SOFR rate with a reset clause after every six months linked to the then prevailing SOFR rate," said a person familiar with the deal. One basis point is 0.01 percentage point.
The six-month SOFR is around 5.39%. The final pricing of deal is likely to be around 6.49%. has agreed to underwrite the whole amount initially with a possibility of a after a few months.
"Oil India is a top-notch client so the is comfortable underwriting this loan. The final pricing and loan agreement will be signed most likely before the end of the month," said a second person aware of the deal. BoB and Oil India did not reply to an email seeking comment.
Source: Stocks-Markets-Economic Times
