ONGC seeks shareholder nod to help OPAL raise ₹2,680 cr
The board of Oil and Natural Gas Corporation (ONGC) has offered to help ONGC Petro Additions Ltd (OPAL) raise debt resources of ₹2,680 crore.
“OPAL has raised/ proposes to raise debt up to ₹26,800 million and your company has issued/ proposes to issue Letter of Comfort for the said debt plus interest thereon,” ONGC said in a statement to shareholders seeking their consent.
This proposal will be voted on during ONGC’s 26th annual general meeting, to be held on August 30.
A Letter of Comfort (LoC) is a letter issued to a lending institution by a stakeholder of the company acknowledging support of the attempt for financing asked by that company. A letter of comfort does not imply that the parent company guarantees repayment of the loan being sought by the subsidiary company.
