ONGC raises $ 300 million by issuing bonds under ECB

Last Updated: Fri, Nov 29, 2019 10:41 hrs
FILE PHOTO: A technician is pictured inside a desalter plant of Oil and Natural Gas Corp (ONGC) on the outskirts of Ahmedabad

New Delhi: State-run Oil and Natural Gas Corporation (ONGC) has raised $300 million via the External Commercial Borrowing route to meet its capital expenditure needs.

The fund has been raised by issuing 10-year dollar denominated bonds.

According to the company, the borrowing was done in accordance with the ECB guidelines issued by the Reserve Bank of India.

"The bonds will bear a coupon of 3.375 per cent and will mature in 2029. This is the tightest coupon for 10 year or longer tenor offering from India ever achieved by any Indian Corporate," the integrated energy major said in a statement.

"The mix of investors is diverse, from across Singapore, HK, London, Taiwan, Japan and Middle East which includes 77 per cent bid from Asian investors and 23 per cent from EMEA investors."

Borrowing through dollar denominated bonds is considered important as it would set a benchmark for the ONGC group. It is anticipated that once the benchmark is set, it will facilitate group entities to raise funds at a competitive price, the company statement added.