Videocon Industries Ltd. (VCLF), controlled by billionaire Venugopal Dhoot, plans to borrow as much as $1.4 billion to develop energy assets in Mozambique, according to a person familiar with the matter.
IDBI Bank Ltd. (IDBI) and SBI Capital Markets Ltd. are arranging the loan, the person said, asking not to be identified because the information is private. The two arrangers are marketing the debt to other lenders, the person said.
Videocon, based in the western Indian city of Aurangabad, The Woodlands, Texas-based Anadarko Petroleum Corp. (APC) and Indian state refiner Bharat Petroleum Corp. operate 10,500 square kilometers (2.6 million acres) of offshore gas fields in Mozambique. The fields, called Offshore Area 1 of the deepwater Rovuma Basin, hold at least 10 trillion cubic feet of gas, more than the proven reserve of the U.K., Anadarko said in a statement on Oct. 5.
Dhoot was not immediately available for comment when reached on his mobile phone. Videocon has $1.8 billion of debt due by 2020, according to data compiled by Bloomberg.
Videocon fell 1.8 percent to 171.1 rupees at the close in Mumbai. The stock has declined 1.9 percent this year, compared with a 13 percent gain in the BSE India Sensitive Index.