HONG KONG, Nov 27 (Basis Point) - The standby letter of credit-backed US$200m financing for India's Videocon Group, the diversified group controlled by Venugopal Dhoot, has been increased to US$400m, sources said.
Sole bookrunner Deutsche Bank brought 13 other banks into the deal, which was launched in late August with an unspecified greenshoe. Allocations will be available later, with signing slated for Wednesday.
The loan has a tenor of two years and 11 months, just shy of a three-year SBLC provided by State Bank of India to Videocon for its global oil and gas business.
The Deutsche-led loan pays a margin of 300bp over Libor. Banks were invited to join with US$50m or more for a top-level all-in of around 350bp via 150bp in fees, while those joining with US$30-50m receive around 341.66bp all-in based on a fee of 125bp.
Proceeds fund Videocon's capex requirements in the oil and gas field in Rovuma basin, off the coast of Mozambique. Videocon holds a 10% stake in this oil field, as does Indian state-owned Bharat Petroleum Corp. Anadarko Petroleum Corp is the operator and owner of a 36.5% stake in the oil field.
Videocon also has a stake in oil and gas fields in Brazil. Essentially a consumer electronics maker, Videocon branched out into the oil and gas industry in 1993 and in a few years the new business became a money spinner for the group.
Videocon Industries Ltd is the group's flagship company. Videocon Hydrocarbon Holdings Ltd is the borrower on the SBLC-backed facility. (Reporting by Prakash Chakravarti; Editing by Gavin Stafford)