State-owned Indian Oil Corp (IOC) today said it has built up a foreign currency loan portfolio of $7 billion to meet its capital requirements.
"This portfolio is even more significant under the current scenario when uncertainties are engulfing the global financial system particularly Euro zone, which is passing through unprecedented economic turbulence," the company said in a statement here.
The portfolio of $7 billion consists of funds lent by banks situated in countries such as the US, the UK, Norway, Netherlands, Germany, France, Mauritius, South Africa, Middle East, Japan, Taiwan, Singapore and Australia.
"In spite of uncertainties in global financial markets and tight domestic monetary policy, IOC has been able to garner required funds for its working capital and projects," it said.
IOC said though, foreign currency loans were available at substantially cheaper rates, any foreign currency loan is preceded by finalisation of complex loan agreements and rigorous due diligence by foreign banks.
Due to interest rate differential coupled with scarcity of foreign currency funds, Indian corporates have been vying for more of these funds.
"IOC, like ever before, has been able to attract continuous flow of foreign funds due to its strong positioning in the international market," it added.