Why has HPCL raised Rs.2000 crore from the debt market?
Answer
Answer
HPCL raised Rs.2000 crore in debt to finance its capex during the current financial year. These funds are being raise through the issue of unsecured redeemable debentures with face value of Rs.10 lakhs each. Considering the denomination it will be privately placed.
The debentures will carry a coupon rate of 4.79% and will mature in October 2023 with tenure of 3 years. Apart from HPCL, other oil companies like Indian Oil and ONGC have already raised funds from this route. IOC had raised a similar amount.