BPCL to raise $500 million from overseas bond sale

BPCL to raise $500 million from overseas bond sale

State-run Bharat Petroleum Corp. Ltd (BPCL) has hit the international bond market to raise as much as $500 million, said two investment bankers, requesting anonymity. BPCL, India’s second largest refiner and fuel retailer, will raise capital through the sale of foreign currency convertible bonds (FCCBs) to meet its capital expenditure, they added.

“BPCL is expanding its refining and petrochemicals operations. The fundraise will help the company meet the capex requirements for its expansion plans,” said the first investment banker. The bonds have been issued Baa2 rating by Moody’s. The tenure of the issue could, however, not be ascertained immediately.

“The affirmation of BPCL’s ratings reflects our expectation that its credit profile will remain constrained by high shareholder returns despite its improving operating profile,” said Vikas Halan, senior vice president, Moody’s, adding that the company may moderate its dividend payments or adjust its capital spending over the next 12-18 months to improve its credit metrics. Read More

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