ONGC Videsh Ltd (OVL) on Tuesday said its $800-million dual-tranche bond guaranteed by the parent, ONGC, was oversubscribed.
In a statement, the company said, the bond was oversubscribed with an order book aggregating close to $3 billion from ‘high quality’ investor accounts.
OVL will apply the net proceeds to replace bridge financing obtained for acquisition of participating interests in upstream and midstream oil and gas assets in Azerbaijan, which was completed in March. OVL had a bridge loan of $870 million to fund the acquisition.
OVL had floated the bond in two tranches: $300 million in 5-year tenor and $500 million in 10-year tenor.
The statement further said the transaction reported lowest ever coupon achieved by an Indian issuer in the five-year and 10-year tenor in the dollar bond market. OVL issued $500 million of 10-year notes on April 29 at 210 basis points over US Treasuries and $300 million of 5-year debt at a premium of 190 basis points.
Reg S is a regulation by the US Securities and Exchange Commission to control US stocks sold outside the country.
Meanwhile, ONGC on Tuesday said it has struck oil and gas at three locations in KG deep offshore basin and Kutch shallow offshore.
However, the explorer did not reveal potential hydrocarbon that may be drilled out of these discoveries.
Also, the company’s board gave its go-ahead for investments up to Rs 2,000 crore. richa.mishra@thehindu.co.in