ONGC to raise Rs 181 bn from three banks to finance HPCL acquisition

This amounts to half of its Rs 369-bn funding requirement for buying government's entire stake in the country's second-largest petroleum retailer

Oil and Natural Gas Corporation (ONGC) will raise nearly Rs 181 billion in debt to meet its funding requirement for acquisition of Hindustan Petroleum Corporation. ONGC has a funding requirement Rs 369.15 billion for buying government’s 51.2 per cent stake in the country's second-largest petroleum retailer.

The biggest portion of this debt, Rs 106 billion, will come from Punjab National Bank in the form of a short-term rupee loan. Bank of India and Axis Bank will lend Rs 44.6 billion and Rs 30 billion, respectively, to ONGC.

The loan agreement with PNB has a sub-limit of Rs 106 billion towards foreign currency