ONGC rose 0.79% to Rs 400.75 at 10:29 IST on BSE after the company said that ONGC Videsh has priced $1.5 billion and euro 525 million unsecured bonds in the international capital markets.
The announcement was made during market hours today, 9 July 2014.
Meanwhile, the S&P BSE Sensex was up 4.08 points or 0.02% at 25,586.19.
On BSE, so far 2.13 lakh shares were traded in the counter as against average daily volume of 8.42 lakh shares in the past two weeks.
The stock was volatile. The stock rose as much as 1.21% at the day's high of Rs 402.45 so far during the day. The stock lost as much as 1.65% at the day's low of Rs 391 so far during the day.
ONGC Videsh, the wholly-owned subsidiary of ONGC announced that it has priced $1.5 billion and euro 525 million unsecured bonds in the international capital markets (Bonds). These Bonds are guaranteed by ONGC. The Reg S Bonds will be issued in dual currency with two tranches of $750 million each for 5-year and 10-year tenors respectively and one tranche of euro 525 million for 7 year tenor. The Bonds are rated Baa2 by Moody's and BBB- by S&P.
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ONGC said that the transaction is the largest ever Reg S bond deal from India to date. It was also the maiden offering by ONGC Videsh in the euro bond markets, it added. The offering was oversubscribed approximately 4.5 times in USD and 3.6 times in euro.
The 5-year USD Bonds were priced at T+160 bps bearing a fixed coupon of 3.250% per annum, equivalent to a price of 99.598 and a yield of 3.338% and the 10-year bond were priced at T+207.5 bps bearing a fixed coupon of 4.625% per annum, equivalent to a price of 99.454 and a yield of 4.694%. The 7-year euro bonds were priced at euro MS+180 bps bearing a fixed coupon of 2.750% per annum, equivalent to a price of 99.623 and a yield of 2.810%. ONGC Videsh intends to use the bond proceeds to refinance its bridge loans availed for the recently concluded acquisitions of 16% stake in Rovuma Area 1, Offshore Mozambique, ONGC said in a statement.
The bonds saw a large geographic spread, with interested investors from Europe, US and Asia, ONGC said.
ONGC Videsh is a wholly owned subsidiary of ONGC focusing on overseas E&P assets. At present ONGC Videsh is present in 33 projects in 16 countries.
ONGC's net profit surged 44.3% to Rs 4889 crore on 2.4% decline in net sales to Rs 20880.93 crore in Q4 March 2014 over Q4 March 2013.
ONGC is India's largest government-run corporation and produces about 70% of India's crude oil and natural gas.
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