India’s Biggest Oil Explorer Plans First Dollar Debt in 2 Yearsby and
Company signed dollar loan to fund Russian field stake
Planned sale will be ONGC’s first dollar offering since 2014
ONGC Videsh Ltd., the overseas unit of India’s largest energy explorer, plans to raise more than $1 billion to refinance a bridge loan, according to Oil & Natural Gas Corp. Finance Director A.K. Srinivasan.
The planned bond will be state-run ONGC Videsh’s first dollar-denominated issuance since 2014, when it raised $1.5 billion. Borrowing by Indian companies in the U.S. currency picked up in the first-half of 2016 to a total of $2.4 billion, compared with about $1.9 billion in the July-to-December period last year, according to data compiled by Bloomberg.
“Rates are low, so we will take advantage of that,” Srinivasan said in a telephone interview on Tuesday. “We will be shortly going to the overseas bond market for this.”
ONGC Videsh signed a nine-month $1.16 billion loan with six banks last month to fund its purchase of a stake in Russia’s Vankor field, according to data compiled by Bloomberg. The New Delhi-based company completed acquisition of the 15 percent equity in Rosneft OAO’s unit JSC Vankorneft for $1.27 billion, it said in a statement May 31.