ONGC issues CPs worth Rs 1000 crore at 4.13% interest rate
NEW DELHI: Oil and Natural Gas Corp (ONGCNSE -1.46 %) has raised Rs 1000 crore via commercial papers at a discount rate of 4.13% per annum, signalling the debt market’s strong interest in India’s largest explorer despite an oil crash that has hammered its cash flows.
ONGC signed a deal confirmation for issuance last week and would be issuing the commercial paper by April 30, industry executives said. The issue is being made at a discount rate of 4.13% per annum for the tenor of 85 days compared to interest rates of 4.48%-7% per annum for papers issued by other companies between 7th and 21st April for similar-maturity buckets, according to executives.
