ONGC Videsh plans to raise $700 million from overseas investors
The company plans to retire old loans
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OVL, is the investment arm of India’s oil and gas major ONGC, and has invested in several fields across the world.
ONGC Videsh (OVL) is planning to raise $700 million from overseas investors as syndicated loans in its efforts to take advantage of the falling interest rates in the international markets and retire its old loans.
The company has requested banks to send in their proposals for participating in the offer, which includes a $200-million greenshoe option. OVL expects several banks to join the offering — considering the investor demand for its previous offers. The syndicated loan is expected to be priced at around 100 basis points over the Libor rate, said a banker close to the transaction.
“There is good demand for well-rated companies from India and OVL is taking advantage of the rates, which are down significantly since January,” said a banker. The company had raised a similar sized loan in March, the banker said.
OVL, is the investment arm of India’s oil and gas major ONGC, and has invested in several fields across the world. OVL has been looking to rationalise its existing debt.
According to credit rating agency ICRA: “Over the years, OVL has been acquiring participating interests in overseas oil and gas assets and participates either directly or through wholly-owned subsidiaries/joint venture companies in 37 projects in 17 countries, of which 14 are producing properties.”
The company has requested banks to send in their proposals for participating in the offer, which includes a $200-million greenshoe option. OVL expects several banks to join the offering — considering the investor demand for its previous offers. The syndicated loan is expected to be priced at around 100 basis points over the Libor rate, said a banker close to the transaction.
“There is good demand for well-rated companies from India and OVL is taking advantage of the rates, which are down significantly since January,” said a banker. The company had raised a similar sized loan in March, the banker said.
OVL, is the investment arm of India’s oil and gas major ONGC, and has invested in several fields across the world. OVL has been looking to rationalise its existing debt.
According to credit rating agency ICRA: “Over the years, OVL has been acquiring participating interests in overseas oil and gas assets and participates either directly or through wholly-owned subsidiaries/joint venture companies in 37 projects in 17 countries, of which 14 are producing properties.”
Topics : ONGC Videsh Overseas Investors OVL