13 Aug , 2021 By : Kanchan Joshi
Mumbai: Rosneft owned Nayara Energy, an integrated downstream energy company has raised Rs2,285 crores through placement of Non-Convertible Debentures (NCDs) in the domestic market, the company said on Friday.
The issue got over-subscribed by 128.5% over the base size of Rs1,000 crores. Proceeds from this issue will be utilized for refinancing of existing debt, routine capex and general corporate purposes.
The secured NCDs were offered with a coupon rate of 8.75% with a three-year bullet maturity. The company had recently repaid its 2018 NCDs of Rs2,400 crores.
“The oversubscription reiterates the confidence of our investors in the company’s strong parentage, experienced management team and significant improvement in asset and liability profile. We remain committed to accelerate our growth plans in India to become one of the largest integrated energy and petrochemicals complexes in the country," said Anup Vikal, chief financial officer, Nayara Energy.
Vikal added that the NCD issue will provide flexibility in the capital structure and further optimize the interest cost for the company.
Nayara Energy is a downstream energy and petrochemicals company with a presence across the hydrocarbon value chain from refining to retail.
In August 2017, the company was acquired by international investors, Rosneft and an investment consortium comprising of global commodity trading firm, Trafigura and UCP Investment Group.
The company owns and operates India’s second largest single site refinery at Vadinar, Gujarat with a current capacity of 20MMTPA. The refinery is one of the world’s most modern and complex refineries with a complexity of 11.8, which is amongst the highest globally.
Nayara Energy’s fuel retail network consists of 6200 plus outlets across India.
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