ONGC raises $300m at lowest rate

State-owned Oil and Natural Gas Corp (ONGC) has raised $300 million in overseas borrowing at a coupon rate of 3.375 per cent, the lowest by any Indian issuer, to meet its capital expenditure.

The 10-year bond will mature in 2029, the company said in a statement.

“ONGC has priced its maiden offering of dollar bonds in the aggregate principal amount of $300 million for meeting capital expenditure in accordance with the external commercial borrowing guidelines issued by the Reserve Bank of India and successfully achieved its objective to set a fresh benchmark,” it said.

At 3.375 per cent interest rate, this is the lowest rate for 10-year or longer tenor offering from India.