CorporateONGC plans to take Rs 4k cr loan to refinance OVL's debt
Oil and Natural Gas Corp plans to raise a term loan of about Rs 4,000 crore to refinance the debt its overseas investment arm had taken to buy UK-based Imperial Energy Corp.
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"We had taken a bridge loan of Rs 5,250 crore or $1 billion to fund Imperial acquisition. Now we are in the process of refinancing it through term borrowing," ONGC Director (Finance) Dinesh K Sarraf said today.
The company had garnered $200 million through foreign currency loans and is now looking at raising $800 million by issuing bonds and selling commercial papers.
"We will complete the refinancing before January 10," he said.
ONGC Videsh Ltd, the overseas investment arm of the state-run firm, had sold one-year commercial paper to about 15 investors on January 9, to partly fund the 1.4 billion pound Imperial buy.
ONGC is now taking term loan to pay these lenders.