ONGC sets up a euro medium-term note programme of $2 billion

Oil and Natural Gas Corporation (ONGC) said on Thursday it has set up a euro medium-term note (EMTN) programme of two billion dollars which will be listed on Singapore Stock Exchange.

An EMTN programme is an uncommitted facility and any drawdown thereof under this document will be subject to funding requirements. ONGC is among select few corporates and India's first oil and gas public sector integrated energy major to set it up.

"This is a landmark achievement for ONGC as setting up of EMTN programme will further enhance our credit profile among global investor base," said Chairman and Managing Director Shashi Shanker.

"We have embedded structural features in the programme which will allow ONGC, ONGC Videsh or its subsidiaries to access international markets within shorter time frame. We do believe this programme will assist in meeting our strategic financing requirements for our organic or inorganic growth prospects true to our vision of becoming an integrated energy major of global reckoning."

ONGC's Finance Director Subhash Kumar said the EMTN programme will allow the company to access international bond markets opportunistically to meet our funding requirements.

"The current low yield environment in international debt markets does provide attractive tenor funding options. However, any drawdown under the programme will be made to meet specific requirements of ONGC, ONGC Videsh Limited or its subsidiaries," he said in a statement.