OVL raises USD 2.2 billion from bond sales

ONGC Videsh, a unit of ONGC, has priced US$ 1.5 billion and Euro 525 million unsecured bonds in the international capital markets (bonds).

These bonds are guaranteed by ONGC. The Reg S bonds will be issued in dual currency with two tranches of US$ 750 million each for 5-year and 10-year tenors respectively, and one tranche of Euro 525 million for 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.

ONGC Videsh intends to use the bond proceeds to refinance its bridge loans availed for the recently concluded acquisitions of 16% stake in Rovuma Area 1, Offshore Mozambique.

BNP Paribas, Citigroup, DB, RBS and Standard Chartered acted as joint bookrunners and lead managers for this issue.

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Press Release, July 9, 2014; Image: ONGC