Numaligarh Refinery Plans Debut Bond Issue of ₹5,000 Crore

Numaligarh Refinery, a subsidiary of Oil India based in Assam, is set to make its debut in the bond market with a significant issuance planned for next month. The company aims to raise approximately ₹5,000 crore through its first-ever bond offering, marking a major financial move for the refinery.

Bond Issuance Details

The proposed bond issuance is expected to have the following characteristics:

• Issue Size: Approximately ₹5,000 crore
• Timing: Planned for next month
• Maturity Period: Short-term bonds ranging from three to five years
• Structure: Possibility of a two-tranche issue if needed
• Ratings: 'AAA' ratings from both Crisil and India Ratings

This high credit rating indicates a strong level of creditworthiness and is likely to attract significant investor interest.

Market Context

Numaligarh Refinery's bond issuance comes at a time when Indian firms are increasingly turning to the bond market for funding. The first five months of the current financial year have seen record amounts raised through corporate bonds, highlighting a growing trend in India's financial landscape.

About Numaligarh Refinery

Numaligarh Refinery is a prominent unit of Oil India, operating in the state of Assam. As a key player in India's oil refining sector, the company's move to issue bonds signifies its strategy to diversify funding sources and potentially support future growth initiatives.

This debut bond issuance by Numaligarh Refinery not only represents a significant step for the company but also contributes to the broader narrative of India's evolving corporate finance landscape, where companies are increasingly leveraging bond markets for capital raising.