Coal News We love to talk!

FEB 13 2014

OVL to raise $2.5 bn in offshore funds

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 13th FEB 2014

In the single largest offshore five-year loan arranged by an Indian company in the past three years, ONGC Videsh (OVL) has entered into agreements with two consortia of international banks to raise $2.5 billion. This would be used to finance its acquisition of 10 per cent participating interest in the Rovuma Area-I Block in Mozambique.

The first loan arrangement for five years amounting to $1.775 billion was signed with a consortium including ANZ, Bank of Nova Scotia, BTMU, DBS, Mizuho, RBS, Societe Generale, State Bank of India (SBI) and Sumitomo Mitsui Banking Corporation (SMBC). The company had initially planned to raise $1 billion through this long-term facility. SMBC took the leadership role in this arrangement, with a commitment of $700 million.

The second arrangement is in the nature of bridge finance of $725 million for one year with a consortium including ANZ, BNP Paribas, BTMU, Citi, DBS, RBS and SBI. In April 2013, the company made its inaugural offshore dollar bond offering of dual-tranche in international markets, aggregating $800 million, to finance its acquisition of participating interest in ACG field in Azerbaijan and the associated cross-country Baku-Tbilisi-Ceyhan pipeline.


Banking ONGC Bank of India Mozambique Azerbaijan ONGC Videsh India

Related News

  • ONGC Videsh plans to raise stake in Latin American blocks  Read more
  • Natural gas losing its shine as Asia holds faith in coal power  Read more
  • Cancelling JPLs bid, allotting mines to CIL wrong: HC  Read more
  • RILs investments in refining pay off  Read more
  • Coal India Q4 net down by 4% at Rs 4,239 cr  Read more
  • Nearly 35,000 families to get LPG connections in Belagavi  Read more
  • TPCIL commences full commercial operation of Krishnapatnam plant  Read more
  • Tata Power Delhi Distribution Ltd starts scheme to encourage online bill payments  Read more
  • Only 5% tariff hike allowed by state power regulators in 16 states  Read more
  • Fuel prices to rise as govt helps retailers reduce loss  Read more