NEW DELHI : ONGC Videsh Ltd–the overseas investment arm of state-owned Oil and Natural Gas Corp Ltd–plans to raise $2.5 bln by March to part fund its acquisition of 10% stake in Rovuma Area 1 offshore block in Mozambique, the company’s Director Finance S.P. Garg said.
This is part of the $4 bln fund raising plan for the acquisition, and the company has already raised $1.5 bln via bridge loans.
“The fund raising will happen very soon, within this financial year,” Garg said on the sidelines of an industry event.
In August, ONGC Videsh Ltd signed a definitive agreement to acquire 10% participating interest in the Rovuma Area 1 offshore block in Mozambique for $2.64 bln rupees from Anadarko Petroleum Corp’s arm Anadarko Mozambique Area 1 Limitada in addition to the 10% stake it jointly bought with Oil India Ltd in June from Videocon Industries Ltd for $2.47 bln.
In April, ONGC Videsh had raised $800 mln through issuance of senior unsecured dollar-denominated notes maturing in five and 10 years to replace bridge financing availed for acquisition of minority stake in a field in Azerbaijan, which was completed in March.
The company raised $300 mln through five-year bonds, and the rest through 10-year bonds.
On Monday, shares of ONGC closed at Rs 280.95 on the National Stock Exchange, up 1.8%. -Cogencis
( To view our epaper please Tap here . For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)