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.

Tags

Banking ONGC Bank of India Mozambique Azerbaijan ONGC Videsh India

Related News

  • India misses power capacity addition target for second year in row  Read more
  • No returning to subsidies on petrol, diesel: Govt  Read more
  • Oilmins gas pricing model hits North Block roadblock  Read more
  • Heating up the competitive market: Vedanta gears up for solar foray  Read more
  • Finance ministry seeks report on power plants using imported coal  Read more
  • April manufacturing PMI rises growth slackens on power cuts  Read more
  • Efforts of Railways, CIL bring record growth in coal offtake  Read more
  • OVL ups capex a third, eyes 9 mtoe output in FY16  Read more
  • ONGC flirts with losses as crude price nears its production cost  Read more
  • LPG unloading facility at Mangaluru port  Read more