NEW DELHI : ONGC Videsh Ltd–the overseas investment arm of state-owned Oil and Natural Gas Corp Ltd–plans to raise $2.5 bln by March to part fund its acquisition of 10% stake in Rovuma Area 1 offshore block in Mozambique, the company’s Director Finance S.P. Garg said.

This is part of the $4 bln fund raising plan for the acquisition, and the company has already raised $1.5 bln via bridge loans.
“The fund raising will happen very soon, within this financial year,” Garg said on the sidelines of an industry event.
In August, ONGC Videsh Ltd signed a definitive agreement to acquire 10% participating interest in the Rovuma Area 1 offshore block in Mozambique for $2.64 bln rupees from Anadarko Petroleum Corp’s arm Anadarko Mozambique Area 1 Limitada in addition to the 10% stake it jointly bought with Oil India Ltd in June from Videocon Industries Ltd for $2.47 bln.
In April, ONGC Videsh had raised $800 mln through issuance of senior unsecured dollar-denominated notes maturing in five and 10 years to replace bridge financing availed for acquisition of minority stake in a field in Azerbaijan, which was completed in March.
The company raised $300 mln through five-year bonds, and the rest through 10-year bonds.
On Monday, shares of ONGC closed at Rs 280.95 on the National Stock Exchange, up 1.8%. -Cogencis

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