ONGC Videsh Plans To Raise $700 Million From Overseas Investors
ONGC Videsh (OVL) is planning to raise $700 million from overseas investors as syndicated loans in its efforts to take advantage of the falling interest rates in the international markets and retire its old loans.
The company has requested banks to send in their proposals for participating in the offer, which includes a $200-million greenshoe option. OVL expects several banks to join the offering — considering the investor demand for its previous offers. The syndicated loan is expected to be priced at around 100 basis points over the Libor rate, said a banker close to the transaction.
“There is good demand for well-rated companies from India and OVL is taking advantage of the rates, which are down significantly since January,” said a banker. The company had raised a similar sized loan in March, the banker said.
OVL, is the investment arm of India’s oil and gas major ONGC, and has invested in several fields across the world. OVL has been looking to rationalise its existing debt.
According to credit rating agency ICRA: “Over the years, OVL has been acquiring participating interests in overseas oil and gas assets and participates either directly or through wholly-owned subsidiaries/joint venture companies in 37 projects in 17 countries, of which 14 are producing properties.”
OVL’s revenue during the first quarter of financial year 2021-22 (Q1FY22) stood at Rs 4,075 crore, up from Rs 2,396 crore in the corresponding quarter last year. Profit after tax stood at Rs 915 crore in Q1, up from a loss of Rs 334 crore the previous year. Operating costs rose to Rs 1,473 crore in Q1, up from Rs 1,116 crore the previous year.
(With inputs from Twesh Mishra)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
Rising Rates, Rising Challenges: Bankers Adapt To Serve Troubled Companies In A Changing Economic Landscape
As interest rates climb, troubled companies are facing heightened financial pressures, prompting them to seek assistance... Read more
The Elusive Nature Of Fraud Detection: Exploring The Auditor's Dilemma
In the intricate world of financial reporting, auditors serve as guardians of integrity, tasked with uncovering discrepa... Read more
The Battle For Depositors: US Lenders Ramp Up Efforts Amidst Rate Uncertainty
In the competitive landscape of the US banking sector, retaining depositors is paramount for lenders seeking to maintain... Read more
Beyond Capital: Unveiling The Complexities Of Bank Failure Prediction
In the realm of banking, the ability to predict and prevent failures is paramount for financial stability and consumer c... Read more
Central Banks And The Economic Horizon: Steering Through Uncertaintie
In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more
Transforming Financial Operations With Robotic Process Automation
Author: Ricardo Goulart ... Read more