OVL raises $1 bn in bonds to fund Vankor acquisition

OVL raises $1 bn in bonds to fund Vankor acquisition

PTIUpdated: Thursday, May 30, 2019, 10:34 AM IST
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New Delhi : ONGC Videsh Ltd (OVL) has raised USD 1 billion through a US dollar bonds issue to finance its acquisition of 15 per cent stake in Russia’s second biggest oil field Vankor, its Managing Director Narendra K Verma said.

OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), raised USD 600 million through a 10-year bond at a coupon rate of US treasury rate plus 2.20 per cent and another USD 400 million through a 5.5-year maturity bond at an interest rate of US treasury rate plus 1.75 per cent, he said.

 “It is one of the lowest cost funding rates in the current scenario,” he said. The effective rate comes to 3.75 per cent for USD 600 million bond and 2.875 per cent for USD 400 million papers, reports PTI.

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