ONGC raises $ 300 mn under ECB route

Our Bureau New Delhi | Updated on November 28, 2019

Oil and Natural Gas Corporation (ONGC) has raised $300 million under the External Commercial Borrowing route for meeting its capital expenditure needs.

“The bonds will bear a coupon of 3.375 per cent and will mature in 2029. This is the tightest coupon for 10 year or longer tenor offering from India ever achieved by any Indian Corporate,” an ONGC statement said.

“The mix of investors is diverse, from across Singapore, HK, London, Taiwan, Japan and Middle East which includes 77 per cent bid from Asian investors and 23 per cent from EMEA investors. The Bankers to the deal were – Citi, DBS Bank Ltd, MUFG, SBICAP and Standard Chartered,” the statement added.

ONGC Chairman Shashi Shanker said that the company funds its operations from internal accruals and it has capacity to do the same in future too. But the offering of USD bond was important to set a benchmark for ONGC group. It is anticipated that once the benchmark is set, it will facilitate group entities to raise funds at a competitive price, the statement said.

Published on November 28, 2019

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