HONG KONG, Oct 4 (Basis Point) - Diversified group Videocon
Industries Ltd has secured an around US$2.196bn 14.25-year
standby letter of credit facility from 12 Indian banks,
according to sources.
SBI Capital Markets and IDBI Bank were joint bookrunners for
the SBLC, which would secure offshore financings for the group's
capital expenditure for its oil and gas businesses in
Mozambique, Brazil and Indonesia.
The 12 participating banks are: IDBI Bank (US$589m), State
Bank of India (US$500m), Export-Import Bank of India (US$300m),
ICICI Bank (US$225m), Central Bank of India (US$179m), Union
Bank of India (US$150m), Bank of Baroda (US$53.5m), Corporation
Bank (US$50m), Punjab National Bank (US$50m), Syndicate Bank
(US$50m), State Bank of Hyderabad (US$40m) and State Bank of
The SBLC facility is borrowed by Videocon Industries Ltd and
wholly-owned subsidiary Videocon Oil Ventures Ltd, on an
'obligor-co-obligor' structure, according to a source.
The offshore borrowing entity would be Cayman
Islands-registered Videocon Hydrocarbon Holdings Ltd, an
overseas subsidiary of Videocon.
The SBLC facility was signed on September 27 and matures in
Videocon is a diversified business with interests ranging
from consumer electronics to oil and gas. Videocon Industries
Ltd is the group's flagship company.
(Reporting by Maggie Chen and; Manju Dalal; Editing by Gavin