OVL raises $800 mn for Azerbaijan field
1 May 2013 2:29 AM GMT
ONGC Videsh Ltd, the overseas arm of state-owned Oil & Natural Gas Corp (ONGC), on Tuesday said that it has raised $800 million to part-finance its recent acquisition of interest in an oilfield in Azerbaijan. OVL floated a 5-year tenor $300 million unsecured bond and a 10-year Note for $500 million.
The Notes, which were unconditionally and irrevocably guaranteed by ONGC, were 'over-subscribed with an order book aggregating close to $3 billion from high quality investor accounts,' the company said in a statement here.
OVL priced the 5-year tranche Reg S at US Treasury plus 200 basis points and the 10-year at T plus 230 bps. The 10-year bond will bear fixed coupon of 3.75 per cent per annum while the 5-year note will bear 2.5 per cent per annum.
OVL said it will use the proceeds to replace bridge financing availed for acquisition of stake in the Azerbaijan field.
The company had last month concluded a $1.001 billion deal to buy US energy major Hess Corp's 2.7213 per cent stake in the Azeri, Chirag and the deepwater portion of Guneshli fields in the Azerbaijan sector of the Caspian Sea and 2.36 per cent of the associated Baku-Tbilisi-Ceyhan (BTC) pipeline.
OVL managing director D K Sarraf said, 'We are delighted with the strong interest shown by top global investors in OVL's inaugural bond issue. While this was the largest RegS issuance from India, the transaction was well executed to achieve the lowest pricing in the 5-year and 10 year tenor in the $ bond market by an Indian issuer.'
'High participation by real money investor demonstrates the superior quality of the order book and the confidence of global investors in the fundamentals of the company,' he said.
The Azerbaijan acquisition was OVL's biggest since 2009 when it bought UK-listed Imperial Energy Plc for $2.1 billion.
The Notes, which were unconditionally and irrevocably guaranteed by ONGC, were 'over-subscribed with an order book aggregating close to $3 billion from high quality investor accounts,' the company said in a statement here.
OVL priced the 5-year tranche Reg S at US Treasury plus 200 basis points and the 10-year at T plus 230 bps. The 10-year bond will bear fixed coupon of 3.75 per cent per annum while the 5-year note will bear 2.5 per cent per annum.
OVL said it will use the proceeds to replace bridge financing availed for acquisition of stake in the Azerbaijan field.
The company had last month concluded a $1.001 billion deal to buy US energy major Hess Corp's 2.7213 per cent stake in the Azeri, Chirag and the deepwater portion of Guneshli fields in the Azerbaijan sector of the Caspian Sea and 2.36 per cent of the associated Baku-Tbilisi-Ceyhan (BTC) pipeline.
OVL managing director D K Sarraf said, 'We are delighted with the strong interest shown by top global investors in OVL's inaugural bond issue. While this was the largest RegS issuance from India, the transaction was well executed to achieve the lowest pricing in the 5-year and 10 year tenor in the $ bond market by an Indian issuer.'
'High participation by real money investor demonstrates the superior quality of the order book and the confidence of global investors in the fundamentals of the company,' he said.
The Azerbaijan acquisition was OVL's biggest since 2009 when it bought UK-listed Imperial Energy Plc for $2.1 billion.
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