(ET)
India’s state-owned Oil and Natural Gas Corporation (ONGC) today announced it has successfully raised $300 million through its maiden offer of Dollar bonds. The funds will help meet capital expenditure in line with the External Commercial Borrowing (ECB) guidelines issued by the Reserve Bank of India.
“The bonds will bear a coupon of 3.375% 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 company said in a statement.
Asian investors accounted for 77 per cent of the bids received for the offer while the rest 23 per cent came from entities in the Europe, Middle East and Africa (EMEA) region.
ONGC Chairman Shashi Shanker said the company funds its operations from internal accruals and it has the capacity to do the same in future too. “The offering of USD bond, however, was important to set a benchmark for ONGC group which has become one of the most integrated energy majors post acquisition of HPCL,” he said.
