Thursday, April 10, 2014

OIL becomes first Indian firm to raise $1 bn in foreign bond sale

OIL CMD SK Srivastava
STATE-run oil explorer Oil India Limited (OIL) on April 9 announced it has become the first Indian company to make a foreign currency bond issuance worth $1 billion in its debut US dollar bond sale programme. "Oil India has made an inaugural $1 billion dual-tranche US Dollar (USD) unsecured...
bond issue in the international capital markets. The Regulation S Bonds were issued in two tranches of $500 million each for 5-year and 10-year tenor," the company said in a statement here.
A Regulation S transaction implies that US-based investors cannot participate in the issue.
"It is the largest ever Reg S issuance by any Indian company. The Bond issue was oversubscribed by 9.2 times, which is one of the largest order book for a USD issuance out of India," the statement added.
The Navaratna PSU said the money raised is to repay the loan it had taken to buy Videocon's 10 percent stake in Mozambique's Rovuma Area 1 oil block for $2.475 billion, in association with state-run oil and gas firm ONGC's foreign arm ONGC Videsh late last year, The 10 percent stake is split in 40:60 ratio between the two oil explorers.
"The transaction was very well executed in the backdrop of the Indian elections and a volatile global environment. We are pleased with the strong interest shown by top investors in OIL's debut bond issue," said SK Srivastava, OIL chairman.
The authorized share capital of the PSU is Rs 2000 crore. At present, the Government of India, the promoter of the company is holding 68.43 percent of the total issued & paid-up capital of the company. The balance 31.57 percent of the equity capital is held by public and others including bodies corporate, mutual funds, banks, FIIs, resident individuals, etc.
Today, OIL is a premier Indian national oil firm engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. OIL also provides various E&P related services and holds 26 percent equity in Numaligarh Refinery Limited. Additionally, OIL’s exploration activities are spread over onshore areas of Ganga Valley and Mahanadi. OIL also has participating interest in NELP exploration blocks in Mahanadi Offshore, Mumbai Deepwater, Krishna Godavari Deepwater, etc. as well as various overseas projects in Libya, Gabon, USA, Nigeria and Sudan.

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