Indian Oil Corp. (IOCL) is offering to pay a margin of 195 basis points over the London interbank offered rate for a $300 million loan currently being marketed to banks in syndication, according to a person familiar with the matter.
The company will market the facility to lenders in Asia next week with meetings planned in Tokyo on July 23, Taipei on July 25 and Singapore on July 26, the person said, asking not to be identified because the details are private. Bank responses are due by Aug. 20, the person said.
Bank of Tokyo-Mitsubishi UFJ Ltd., Mizuho Corporate Bank Ltd., State Bank of India and Sumitomo Mitsui Banking Corp. are arranging the facility, according to data compiled by Bloomberg.
P.K. Goyal, Indian Oil’s director of finance, was in a meeting and not immediately available to comment on the financing when contacted at his office today.
Banks pledging $15 million or above will receive a 194 basis-point fee for a so-called all-in rate of 235 basis points, the person said. Banks committing $10 million to $14 million get a fee of 170 basis points for an all-in rate of 230 basis points, while those lending $5 million to $9 million receive a fee of 146 basis points for an all-in rate of 225 basis points, the person said.
The loan, which has an average life of 4.85 years, has already been pre-funded by the four arranging banks, the person said.
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