ONGC Videsh raises $2.2 bn in bonds

Our Bureau New Delhi | Updated on July 09, 2014

ONGC Videsh Ltd, the overseas arm of PSU oil explorer ONGC, announced it has raised $2.2 billion (Rs 11,000 crore approximately) through issue of unsecured bonds in dollar and euro denominations. The money raised will help the company refinance the debt taken for acquisition of oil fields in Mozambique.

“ONGC Videsh intends to use the bond proceeds to refinance its bridge loans availed for the recently concluded acquisitions of 16 per cent stake in Rovuma Area 1, Offshore Mozambique,” said the company is a statement.

The company raised $1.5 billion in dollar denominated bonds while Euro 525 million in euros. The bonds are guaranteed by ONGC.

The bonds were issued late on Monday in three tranches, two of $750 million each for 5 year and 10 year tenors and one of Euro 525 million for a 7-year tenor. Both S&P and Moody’s gave the bonds lower medium grade rating, however, the ratings were still an investment grade.

BNP Paribas, Citigroup, DB, RBS and Standard Chartered acted as joint bookrunners and lead managers for this Issue. “ONGC Videsh conducted a series of investors’ meetings in key financial centres of Europe (Amsterdam, Paris, Frankfurt and London) and Asia (Hong Kong and Singapore) with two teams beginning July 1,” the company said in a statement. “The deal roadshows were successful with over 150 investors’ meetings across 3 days and over 500 investors participated in the landmark bond issue,” the company said in a statement.

Published on July 09, 2014

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