Updated December 26th, 2023 at 18:47 IST
ONGC Videsh likely to issue Bonds in Q4, says experts
The specific tenure for the Bonds is under deliberation, discussions suggest a potential inclination for either a five-year or ten-year term.
India's ONGC Videsh (OVL) is considering the prospect of raising capital through a Bond issuance in the Q4 of FY24, as per merchant bankers' insights shared on Tuesday.
The wholly-owned subsidiary of Oil and Natural Gas Corp (ONGC) is contemplating a fundraising target of Rs 50 billion ($601.23 million) through the issuance of Bonds, as indicated by the bankers.
While the specific tenure for the Bonds is under deliberation, discussions suggest a potential inclination for either a five-year or ten-year term. The company might pursue this avenue in the first month of the last quarter, according to the experts.
The proposed notes have secured a AAA rating from both India Ratings and Careedge, enhancing their creditworthiness in the market.
India Ratings has maintained a consolidated outlook concerning the financial profiles of OVL, its subsidiaries, and joint ventures. This approach stems from the robust operational, legal, and strategic interlinkages among these entities, as highlighted by the rating agency in its assessment.
Despite having stakes in 32 oil and gas projects spanning across 15 countries, as outlined by India Ratings, the company has not made any official statement about the anticipated Bond issuance
(With Reuters inputs)
Published December 26th, 2023 at 18:47 IST