BPCL to raise $500mn from overseas bond sale

State-run Bharat Petroleum Corp. Ltd (BPCL) has hit the international bond market to raise as much as $500 million. BPCL, India's second largest refiner and fuel retailer, will raise capital through the sale of foreign currency convertible bonds (FCCBs) to meet its capital expenditure. BPCL is expanding its refining and petrochemicals operations. The fundraise will help the company meet the capex requirements for its expansion plans. On 13 December, Indian Oil Corp. Ltd (IOCL) had announced a buyback of over 297.6 million shares, besides offering an interim dividend of Rs 6.75 per equity share. The same month also saw Oil and Natural Gas Corp. (ONGC) announcing a buyback for 1.97 per cent of its equity shares. BPCL's operating profile has improved since the completion of its Kochi refinery in 2018. Its total refining throughput increased to 37.7 million tonnes in fiscal 2018 from 34.4 million tonnes in the previous financial year. It has also upgraded its refinery to use a higher proportion of heavy crude oil, positioning it well to benefit from the increasing differential between light and heavy crude oil.