Mumbai: “The overseas arm of India’s Oil and Natural Gas Corp (ONGC) has raised Rs1970 crore ($420 million) via bonds,” two sources with direct knowledge of the matter said on Wednesday.
“ONGC Videsh (OVL) sold five-year bonds with an 8.40% coupon, versus an indicative upper limit of 8.50%, and had aimed to raise up to Rs2400 crore,” the sources said adding “The bonds are rated ‘AAA´ by Indian rating agency Crisil and carry a guarantee from OVL’s parent.”
For the bond sale, 10 arrangers were appointed: Standard Chartered Bank, Trust Investment Advisor, AK Capital, ICICI Bank, ICICI Securities Primary Dealership, SBI Capital Markets, Citibank, Axis Bank, HSBC Bank, Kotak Mahindra Bank.
Pay-in is scheduled for Wednesday.
Separately, Reuters Basis Point, citing sources, reported OVL has signed a $200 million three-year refinancing priced at around 145 basis points all-in, with a margin slightly below 100 basis points.
It said that the deal would help refinance some outstanding rupee borrowings taken for the acquisition of Imperial Energy Corp PLC last year.
OVL had early this year raised Rs5000 crore via one-year commercial paper, and last month ONGC’s chairman said ONGC was looking to refinance OVL’s debt.