Indian Oil subsidiary to raise loan worth $100 million from DBS in its first GIFT deal
IOC Global Capital Management IFSC Limited, the wholly owned subsidiary of PSU unit Indian Oil has signed its first deal in GIFT City, Gandhinagar to raise a $100 million loan from DBS Bank Singapore as per to use the funds to refinance the parent entity’s existing external commercial borrowing.
The subsidiary unit has carried out its first transaction at GIFT City, where the term loan of the transaction is funded to refinance Indian oil’s existing ECB [External Commercial Borrowing]. The transaction is in line with the vision of IFSC Gift City of bringing foreign capital to India and releasing the bandwidth of the Indian Banking Industry.
IGCMIL will provide a platform to attract foreign investments for Indian oil’s expansive capital expenditure plans which include renewable energy projects. The ventures undertaken by the unit will significantly impact the realm of ship acquisition, financing, and leasing and this would insulate the company from the unpredictability of the geopolitical dynamics, securing energy supply chains for longer period.Read Also : BPCL Kochi Refinery emerge winners of NIPM Young Managers’ Contest 2024
The subsidiary unit aims to carry out a platform for onshoring the offshore investments of Indian Oil and search for greater coherence and control over overseas investments. In September 2022, IOCL was accorded the approval for the formation of a wholly-owned subsidiary in the office of IFSC at Gujarat International Financial Tec-City [GIFT City] in Gandhinagar.
So therefore, to avail the business opportunities and fiscal benefits offered by GIFT City-IFSC, the IOC board has approved the proposal to open the finance company called IOC Global Capital Management IFSC Ltd. Hence, the unit is formed to carry out finance activities like fund pooling of foreign companies and utilizing the same for carrying out trade financing of IOC and group companies.Read Also : NTPC Wins 23rd Inter CPSU Cricket Tournament
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