ONGC Videsh raises $500 million loan from consortium of banks
ECONOMY & POLICY

ONGC Videsh raises $500 million loan from consortium of banks

ONGC Videsh, the overseas arm of the Oil and Natural Gas Corporation, has raised a $500 million foreign currency loan from a consortium of banks led by DBS, Bank of Baroda and State Bank of India. The loan, which is denominated in dollars and has a tenure of five years, is backed by ONGC's guarantee and is benchmarked to the three-month term secured overnight financing rate (SOFR).

"The loan came at a very competitive rate," said one of the people familiar with the matter, who did not wish to be identified.

ONGC Videsh has drawn down the loan and used the funds to repay $500 million in bonds that matured last week. The company had raised $800 million in bonds in 2013 to finance its stake in the ACG oil and gas project in Azerbaijan. The bonds had a maturity of five years and $300 million of them matured in 2018. The remaining $500 million matured last week.

DBS has the largest exposure among the three banks in the consortium. The lenders are now looking to expand the consortium and have launched a primary syndication of the loan. The syndication is expected to close by July. Roadshows have been held in Singapore, Tokyo and Taipei to attract new lenders.

ONGC Videsh is one of a small number of Indian companies that have raised external commercial borrowings (ECBs) in recent months. Indian borrowers are becoming more attractive to overseas lenders as the Chinese economy slows down and banks have fewer opportunities to lend there.

Also Read
AICTSL to modernise bus stops, introduce electric buses
Chennai Metro scraps plans to build 9 stations

ONGC Videsh, the overseas arm of the Oil and Natural Gas Corporation, has raised a $500 million foreign currency loan from a consortium of banks led by DBS, Bank of Baroda and State Bank of India. The loan, which is denominated in dollars and has a tenure of five years, is backed by ONGC's guarantee and is benchmarked to the three-month term secured overnight financing rate (SOFR). The loan came at a very competitive rate, said one of the people familiar with the matter, who did not wish to be identified. ONGC Videsh has drawn down the loan and used the funds to repay $500 million in bonds that matured last week. The company had raised $800 million in bonds in 2013 to finance its stake in the ACG oil and gas project in Azerbaijan. The bonds had a maturity of five years and $300 million of them matured in 2018. The remaining $500 million matured last week. DBS has the largest exposure among the three banks in the consortium. The lenders are now looking to expand the consortium and have launched a primary syndication of the loan. The syndication is expected to close by July. Roadshows have been held in Singapore, Tokyo and Taipei to attract new lenders. ONGC Videsh is one of a small number of Indian companies that have raised external commercial borrowings (ECBs) in recent months. Indian borrowers are becoming more attractive to overseas lenders as the Chinese economy slows down and banks have fewer opportunities to lend there. Also Read AICTSL to modernise bus stops, introduce electric buses Chennai Metro scraps plans to build 9 stations

Next Story
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?