Oil and Natural Gas Corporation’s (ONGC) overseas arm - ONGC Videsh (OVL) has raised $1 billion through a US dollar bonds issue to finance its acquisition of 15% stake in Russia’s second biggest oil field Vankor. The proceeds of the issue would go to refinance a $1.2 billion bridge loan the company had taken from a group of foreign banks to make payments for the $1.268 billion acquisition.
OVL has raised $600 million through a 10-year bond at a coupon rate of US treasury rate plus 2.20 percent and another $400 million through a 5.5-year maturity bond at an interest rate of US treasury rate plus 1.75 percent. The effective rate comes to 3.75 percent for $600 million bond and 2.875 percent for $400 million papers.
ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India with current market capitalization of about $31 billion.
| Company Name | CMP |
|---|---|
| ONGC | 279.25 |
| Oil India | 454.40 |
| Jindal Drilling&Inds | 535.85 |
| Deep Industries | 457.70 |
| Asian Energy Service | 297.85 |
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