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ONGC’s overseas arm raises $1 billion through bonds to fund Vankor acquisition

19 Dec 2016 Evaluate

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.



ONGC Share Price

245.35 0.20 (0.08%)
18-Jun-2026 16:59 View Price Chart
Peers
Company Name CMP
ONGC 245.35
Oil India 420.65
Jindal Drilling&Inds 582.20
Deep Industries 492.40
Asian Energy Service 354.90
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