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ONGC Videsh Vankorneft, a subsidiary of ONGC Videsh Ltd – the overseas investment arm of ONGC – announced that it has raised $1 billion through debt instruments issued in global markets.
The company raised $400 million through senior unsecured notes due 2022 and $600 million of senior unsecured notes due 2026. The notes are guaranteed by ONGC and have been assigned a Baa2 rating by Moody’s and BBB- by S&P. “The transaction is the largest achieved by an Indian insurer in 2016 and the First Dual tranche insurance from India in 2016. The 5.5 year and 10 year notes were oversubscribed 2.2 and 2.3 times respectively across 185 accounts,” the company said in a statement.
The statement added that prior to the issuance, ONGC and ONGC Videsh had held a series of investor meetings in Hong Kong, Singapore and London since July 14. The proceeds will be used to refinance a part of the bridge loan availed for the acquisition of a 15 per cent equity stake in JSC Vankorneft, Russia.
According to the company, the notes were subscribed to by investors from Asia, Europe and offshore US accounts and investors are fund managers, banks, private banks and sovereign wealth funds.
Citigroup and Standard Chartered Bank acted as Joint Global Coordinators and Citigroup, Standard Chartered Bank, DBS Bank Ltd, Mizuho Securities, MUFG and SMBC Nikko acted as Joint Bookrunners and Joint Lead Managers for this issuance.
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