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ONGC Videsh raises $1 billion by dollar bonds for Vankor stake purchase

ONGC, Oil India, Indian Oil Corp and Bharat Petroleum will collectively own a 49.9% stake in Rosneft's Vankor field

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Ongc Videsh

IANS  |  New Delhi 

ONGC Videsh raises $1 billion by dollar bonds for Vankor stake purchase

State-run explorer ONGC's overseas arm Ltd (ONGC) has raised $1 billion through a US dollar bonds issue to finance its acquisition of 15% stake in Russia's Vankor oil field, the company said in a stock exchange filing on Thursday.

The company raised $600 million through a 10-year bond at a coupon rate of 3.75% and another $400 million through a 5.5-year maturity bond at an interest rate of 2.875%, Director (Finance) S P Garg told reporters here.

"We will draw down the bonds sometime next week," he said.

expects to use the proceeds of the proposed issue to refinance existing bridge loans incurred to acquire a 15% stake in CJSC Vankorneft for $1.26 billion.

ONGC, Oil India, Indian Oil Corp and Bharat Petroleum will collectively own a 49.9% stake in Rosneft's Vankor field, and a 29.9% stake in Rosneft's Tass-Yuryakh field at a total cost of up to $5.4 billion.

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First Published: Fri, July 22 2016. 00:03 IST
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