NEW DELHI: India’s top refiner Indian Oil Corp has set up a subsidiary to pool the funds of its overseas units in order to meet capital and trade finance needs, it said in a statement on Thursday.
The new unit – Finance Company – will help IOC benefit from interest arbitrage as the company’s borrowings increase after selling fuel locally at below-market rates.
Finance Company will be based in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City) in western India.
GIFT City is the culmination of Prime Minister Narendra Modi’s dream to create an international financial centre in the western state, where he was chief minister from 2001 to 2014.
Companies based in GIFT City get a 100% income tax exemption for 10 years.
Finance Company will “carry out finance activities such as fund pooling of foreign companies and utilise the same for carrying out trade financing of IOC and group companies”.
IOC controls about a third of India’s 5 million barrel per day (bpd) refining capacity and regularly requires trade financing for its crude imports.
Finance Company will also handle IOC’s global treasury operation and utilise IFSC to raise capital and debt from overseas markets, it said.
The new unit – Finance Company – will help IOC benefit from interest arbitrage as the company’s borrowings increase after selling fuel locally at below-market rates.
Finance Company will be based in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City) in western India.
GIFT City is the culmination of Prime Minister Narendra Modi’s dream to create an international financial centre in the western state, where he was chief minister from 2001 to 2014.
Companies based in GIFT City get a 100% income tax exemption for 10 years.
Finance Company will “carry out finance activities such as fund pooling of foreign companies and utilise the same for carrying out trade financing of IOC and group companies”.
IOC controls about a third of India’s 5 million barrel per day (bpd) refining capacity and regularly requires trade financing for its crude imports.
Finance Company will also handle IOC’s global treasury operation and utilise IFSC to raise capital and debt from overseas markets, it said.
For all the latest business News Click Here
Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
