Oil India subsidiary to launch $565 million inaugural bond offering, according to bankers.

Oil India Unit's Bond Issuance

• Funding Amount: Numaligarh Refinery, a subsidiary of Oil India, is set to raise approximately 50 billion rupees (around $565 million) through the issuance of short-term bonds next month.
• Bond Details: The bonds will be issued for the first time with a maturity period ranging from three to five years, as reported by two anonymous merchant bankers.

Market Timing and Ratings

• Market Entry: The company is expected to enter the bond market in September, with the possibility of issuing the bonds in two tranches if necessary.
• Credit Ratings: The bonds have received a 'AAA' rating from both Crisil and India Ratings, indicating a high level of creditworthiness.

Context of Fundraising

• Record Fundraising: This bond issuance occurs during a period when Indian companies have achieved a record level of fundraising in the first five months of the current financial year.