ONGC sells $1 billion dual-tranche bond

India's largest oil and gas explorer returns to the international capital markets to seek fresh capital to refinance an acquisition loan.
Vankor
Vankor

ONGC Videsh, the overseas arm of India's biggest oil-and-gas explorer ONGC, issued a dual-tranche bond on Tuesday after average spreads on the country's US dollar-denominated bonds hit the lowest level in almost a year.

The Reg S sale is the state-owned oil company's first international bond offering in more than two years, raising $1 billion from a five-and-a-half year bond and a 10-year bond.

Despite scarcity of new supply from Indian corporates, the company, rated Baa2BBB- by Moody's and SP, paid virtually no new issue premium for the issue, highlighting its persistent stringent cost control.

Orders exceeded $3 billion at...

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