ONGC to raise ₹5000 crore through NCDs

ICRA Ratings has assigned AAA stable rating to Oil and Natural Gas Corporation Ltd’s (ONGC’s) ₹5000 crore non-convertible debentures (NCDs) due to ONGC’s dominant market position in the domestic crude oil and natural gas production business with large proved reserves.

The rating agency has considered the consolidated financials of the ONGC, including ONGC Videsh Limited (OVL), Mangalore Refinery and Petrochemicals Limited (MRPL), Hindustan Petroleum Corporation Limited (HPCL) and some of the special purpose vehicles undertaking forward integration projects, to the extent of any financial commitments made to the stakeholders.

This marks ICRA’s outlook revision on ONGC group to stable from negative on account of recovery in crude oil prices from the lows of about $20 per barrel during April end to about $40 per barrel currently along with recovery in crude oil demand with the easing of lockdowns globally.