ONGC Securing Funds for Rovuma Buy

July 14, 2014

ONGC Videsh Ltd., a wholly-owned subsidiary of Oil and Natural Gas Corp. Ltd., has priced $1.5 billion and €525 million in unsecured bonds in the international capital markets. These Bonds are guaranteed by ONGC. The Reg S Bonds will be issued in dual currency with two tranches of $750 million each for 5-year and 10-year tenors respectively and one tranche of €525 million for a 7-year tenor. The Bonds are rated Baa2 by Moody’s and BBB- by S&P.

The transaction is the largest ever Reg S bond deal from India to date. It was also the maiden offering by ONGC Videsh in the Euro bond markets. The offering was oversubscribed approximately 4.5 times in USD and 3.6 times in Euro.

The funds secured by these bonds will be used to finance its purchase of a 16% stake in Mozambique’s Offshore Rovuma Area 1.

Copyright, Petroleum Africa , 2014.