Indian Oil Corp Seeks $100 Million Funding from DBS Bank
A subsidiary of Indian Oil Corp, namely IOC Global Capital Management IFSC Limited (IGCMIL), has recently inked its inaugural agreement within the Gujarat International Finance Tec-City (GIFT City) located in Gandhinagar.
The agreement involves securing a loan of $100 million from DBS Bank Singapore, as disclosed by the leading Indian refiner in a statement on January 30.
IGCMIL, being a wholly owned subsidiary of Indian Oil, intends to utilize the funds to refinance the existing external commercial borrowing of its parent company. This move signifies a strategic financial step for Indian Oil Corp, aligning with its efforts to optimize and manage its financial structures effectively.
The transaction highlights the growing prominence of GIFT City as a financial hub and underscores Indian Oil's proactive approach to financial management through collaborations with international financial institutions.
Indian Oil chairman, Shrikant Madhav Vaidya, has articulated the group's strategic objective with IGCML, emphasizing the aim to enhance coherence and oversight of overseas investments. Vaidya specifically highlighted that one of the key endeavors undertaken by IGCMIL involves activities in the domain of ship acquisition, financing, and leasing. This initiative reflects Indian Oil's commitment to diversify its investment portfolio and strengthen its global presence.
Anuj Jain, the Director of Finance at Indian Oil, further expounded on IGCMIL's role as a facilitator for onshoring offshore investments of Indian Oil. Jain elaborated that through IGCMIL, the company aims to implement cross-financing strategies within the group entities efficiently. This involves deploying funds currently held as deposits by the group entities, as well as extending credit facilities to various group entities through the strategic raising of both short-term and long-term debt.
The establishment of IGCMIL, therefore, emerges as a pivotal step for Indian Oil in optimizing financial resources and promoting effective capital utilization across its diverse range of ventures.