Business
Stanchart loan for IOC
By Our Special Correspondent
MUMBAI DEC. 5.
Standard Chartered Bank syndicated term loan facility for Indian Oil Corporation (IOC) for Rs. 435 crores. This one year term loan of IOC has been priced on a floating rate basis benchmarked to the three-month CP reference rate as declared daily by Reuters.
``India's first syndicated rupee term facility has been well received by a wide spectrum of public sector, private sector and foreign banks,'' Standard Chartered Bank stated in a press note. Standard Chartered Bank was the mandated lead arranger and book runner and Union Bank of India was the joint arranger. The issue was oversubscribed with confirmed commitments from 11 banks.
It also stated that the CP reference rate has been chosen as the benchmark as it is a transparent and market determined short term rate. The Reuters CP reference rate is published on a daily basis and is polled from 18 banks, primary dealers and corporates.
The recent removal of restrictions on sub-primary lending by the Reserve Bank of India has witnessed transactions wherein banks have lent to select clients on a bilateral basis at rates below their PLR rates.
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