ONGC Videsh raises $2.5 billion in foreign loans to fund Mozambique buy ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has raised $2.5 billion in foreign loans to fund acquisition of a 10 per cent holding in a giant Mozambique gas field. The company had in August last year bought US energy major Anadarko Corps 10 per cent stake in the gas field for $2.6 billion. The loan it has raised will fund that acquisition. OVL has entered into separate agreements with two consortiums of international banks to raise $2.5 billion by way of offshore borrowings to finance its acquisition of 10 per cent participating interest in Rovuma Area I Block in Mozambique offshore, the company said in a statement. Prior to this, OVL had in June 2013 announced buying Videocons 10 per cent stake in the same field, which may hold as much as 65 Trillion cubic feet (Tcf) of gas resources, along with Oil India Ltd (OIL) for $2.475 billion. This stake was split between OVL and OIL in the ratio of 60:40. To finance its 6 per cent buy, OVL in January raised $1.5 billion one-year bridge loan facility from a consortium of 9 banks. OVL said its latest fund raising has been down through two separate consortium of international banks.
Posted on: Thu, 13 Feb 2014 04:25:20 +0000
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