Millennium Post

OVL raises $2.5 bn for Mozambique unit

ONGC Videsh Ltd (OVL), the overseas arm of Oil and Natural Gas Corporation Ltd (ONGC), has entered into separate agreements with two consortiums of international banks to raise $2.5 billion by way of offshore borrowings to finance its acquisition of a 10 per cent participating interest in Mozambique’s Rovuma Area I offshore block.

The first facility for a five year term amounting to $1.775 billion was signed with a consortium that included ANZ, Bank of Nova Scotia, BTMU, DBS, Mizuho, RBS, Societe Generale, SBI and SMBC.

The second facility is in the nature of a bridge finance of $725 million for a one-year term with a consortium including ANZ, BNP Paribas, BTMU, Citi, DBS, RBS and SBI.

‘We are extremely pleased with the strong enthusiasm shown by top global banks at extremely fine pricing leading to market defining transactions. In the backdrop of a volatile global economic environment, such interest is reflective of ONGC’s robust credit profile and underlines the strong India story,’ said ONGC CMD and OVL Chairman Sudhir Vasudeva.
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