ओएनजीसी विदेश बॉन्ड जारी करने से भारत के सर्वश्रेष्ठ कॉरपोरेट बॉन्ड डील को 2016 में प्रदान किया गया
ONGC Videsh Vankorneft’s US$1 billion dual-tranche bond deal has been awarded the “Best Corporate Bond” deal from India at The Asset Triple A Country Awards 2016. This was the first dual-tranche issuance out of India in 2016 and executed swiftly to access a favourable market issuance window.
The award on behalf of OVVL was received by Mr Vivekanand, Director (Finance), ONGC Videsh at a ceremony held at Hong Kong on January 11 2017 (Wednesday). The ceremony was attended in large number by senior managements and representatives of corporates, banks and financial institutions.
About the Issue
ONGC Videsh Vankorneft Pte Ltd (OVVL) is ONGC Videsh’s indirect wholly-owned subsidiary in Singapore and holds 26% shares in JSC Vankorneft. On 19 July 2016, OVVL priced US$ 1 billion Notes comprising of US$ 400 million Senior Unsecured 5.5 years Notes due 2022 and US$ 600 million Senior Unsecured 10 years Notes due 2026 in the international capital markets (the “Notes”). The Notes are guaranteed by ONGC. The Notes have been assigned a rating of Baa2(Moody’s) and BBB- (S&P).
The transaction was the First Dual tranche issuance from India in 2016.The 5.5-yr and 10-yr Notes were over-subscribed by 2.2 and 2.3 times respectively, across 185 accounts which participated in the landmark issuance.
ONGC and ONGC Videsh Limited conducted a series of investor meetings in key financial centres of Asia (Hong Kong & Singapore) and Europe (London) beginning 14th July 2016.The deal roadshows were successful with over 80 investor meetings across 3 days. 185 investors participated in the landmark issuance.
The 5.5-year Notes were priced at T+ 175 bps, bearing a fixed coupon of 2.875% per annum, equivalent to a price of 100.00 and a yield of 2.875% and the 10-year Notes were priced at T+220 bps, bearing a fixed coupon of 3.750% per annum, equivalent to a price of 99.81 and a yield of 3.773%. OVVL used the Notes proceeds to refinance a part of the bridge loan availed for the acquisition of a 15% equity shares in JSC Vankorneft, Russia.
The Notes saw a large geographic spread with interested investors from Asia, Europe and Offshore USA accounts. The investors’ base was Fund Managers, Banks, Private Banks and Sovereign Wealth Funds / Insurance companies.
Citigroup and Standard Chartered Bank acted as Joint Global Coordinators. Also Citigroup, Standard Chartered Bank, DBS Bank Ltd, Mizuho Securities, MUFG and SMBC Nikko acted as Joint Bookrunners and Joint Lead Managers for this issuance.
About Triple A Awards
The Asset Triple A Awards are Asia's preeminent recognition for those that have excelled in their respective industry. With close to 20 years of experience conducing awards programs The Asset Triple A's has gone from strength to strength distinguishing best in class organizations.AAA awards programs are built upon a stringent methodology that is combined with a rigorous approach in selecting the best institutions operating within Asia. The awards are adjudicated by The Asset's Board of Editors who collectively have several decades' worth of evaluating industry awards in Asia.
About ONGC Videsh
ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India and is India’s largest international oil and gas E&P Company. At present, ONGC Videsh has 37 projects in 17 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam and New Zealand. ONGC Videsh is currently producing about 229,200 barrels of oil and oil equivalent gas per day. For more information visit: www.ongcvidesh.com
ONGC’s market capitalization as on 11 January 2017 was INR 2,535 billion (US$ 37.2 billion). During the financial year ended 31st March, 2016, ONGC Group had produced 57.38 MMT of oil and oil equivalent gas (MMTOE) (approx. 1.2 MMboe per day); the Consolidated Gross Turnover was INR 1,429 billion (US$ 21.83 billion) during FY’16. For more information visit: www.ongcindia.com