OVL plans 400-mn euro overseas bond issue to partly repay its debt
New Delhi: ONGC Videsh (OVL), the overseas arm of state-run explorer Oil and Natural Gas Corp, plans to raise about 400 million euro in foreign currency bonds to partly repay debt taken to fund its purchase of a stake in a giant Mozambique gas field, according to people with knowledge of the matter.
ONGC Videsh had raised Rs 525 million through a seven-year bond in July 2014 to partly finance its acquisition of a stake worth $4.12 billion in the Mozambique block. These bonds, bearing a fixed coupon of 2.750% per annum and guaranteed by parent ONGC, are due in July. The company holds a 16% stake in Mozambique’s offshore Rovuma Area 1.
