ONGC to go for bridge loan to fund HPCL deal

The department of investment and public asset management is likely to finalise the timing of the HPCL-ONGC deal soon

Oil and Natural Gas Corporation (ONGC) is likely to take a short-term bridge loan for about one year to fund the acquisition of the government’s stake in Hindustan Petroleum Corporation (HPCL).

ONGC has already lined up plans to sell its stake in Indian Oil Corporation (IOC) and GAIL (India) and has also got approvals from shareholders to borrow up to Rs 25,000 crore from the market. “We are looking into all options. As we have to look at favourable market conditions for selling stake in the two companies, we are looking into the option of a bridge loan or any short-term