New Delhi : ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has raised USD 2.5 billion in foreign loans to fund its acquisition of 10 per cent stake in a giant Mozambique gas field.
The company had in August last year bought US energy major Anadarko Corp’s 10 per cent stake in the Mozambique gas field for USD 2.6 billion. The loan it has raised will fund that acquisition. “OVL has entered into separate agreements with two consortiums of international banks to raise USD 2.5 billion by way of offshore borrowings to finance its acquisition of 10 per cent participating interest in Rovuma Area I Block in Mozambique offshore,” the company said in a statement. Prior to this, OVL had in June 2013 announced buying Videocon’s 10 per cent stake in the same field, which may hold as much as 65 Trillion cubic feet (Tcf) of gas resources, along with Oil India Ltd (OIL) for USD 2.475 billion. This stake was split between OVL and OIL in 60:40 ratio. To finance its 6 per cent buy, OVL in January raised USD 1.5 billion one-year bridge loan facility from a consortium of 9 banks. OVL said its latest fund raising has been down through two separate consortium of international banks.
The first facility for a five-year term amounting to USD 1.775 billion was signed with consortium of international banks, including ANZ, Bank of Nova Scotia, BTMU, DBS, Mizuho, RBS, Societe Generale, SBI and SMBC. The company had initially planned to raise USD 1 billion through this long-term facility. “SMBC took the leadership role in this facility with commitment of USD 700 million and acting as Facility and Escrow Agent. This is the single largest offshore 5-year loan facility arranged by an Indian company during the last three years,” the statement said.
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)
