ONGC Videsh ltd plans to raise at least $3 billion in debt to part-fund acquisition of US energy giant ConocoPhillips’ stake in a Kazazkhstan oilfield.
“We can take $1.5 billion loan from our parent company (ONGC)... May be even $2 billion. The rest $3 billion will be raised in overseas debt,” OVl Managing Director Dinesh K Sarraf said here.
OVl in November last year agreed to buy ConocoPhillips’ 8.4 per cent stake in Kazakhstan’s biggest oilfield, Kashagan, for $5 billion.
Sarraf, who has steered OVl out of slumber the company had gone into post-Imperial Energy acquisition debacle, said borrowings will not be an issue as was demonstrated when the company raised $800 million for an acquisition in Azerbaijan at lowest cost ever.
OVl raised $300 million through a 5-year tenor unsecured bond and $500 million through a 10-year Note. The 10-year bond bears fixed coupon of 3.756 per cent per annum while the 5-year note will bear 2.574 per cent per annum.
“We have tested the markets and we are confident of raising funds for Kazakh acquisition,” he said.
OVl, which earlier this month got government approval for the Kashagan acquisition, is awaiting nod from Kazakhstan Government to close the deal.
Kazakhstan has publicly stated that it will convey its decision by July.