HPCL to raise Rs 10,000 crore through debentures

Hindustan Petroleum Corporation Ltd (HPCL) announced Thursday that it would raise Rs 10,000 crore in debt from the local or international markets to finance its oil refining and fuel marketing operations.

At its meeting on Thursday, the board of the company "approved a proposal for borrowing through further issuance of secured/unsecured redeemable non-convertible debentures/bonds/notes, etc. up to Rs 10,000 crore on private placement basis in the domestic market and the overseas market from the date of such approval."

According to a stock exchange report by HPCL, the borrowing fell within the company's overall borrowing capacity. Separately, the company raised Rs 750 crore through the private issuance of debentures to refinance "existing borwing and/or funding of capital expenditure." The coupon rate on the debenture for 10 years will be 7.54 % annually.