Oil and Natural Gas Corporation Ltd. (ONGC) has priced its maiden offering of USD bonds in the aggregate principal amount of USD 300 million for meeting capital expenditure in accordance with the External Commercial Borrowing guidelines issued by the Reserve Bank of India and successfully achieved its objective to set a fresh benchmark for the Group Companies.

The bonds will bear a coupon of 3.375% and will mature in 2029. This is the tightest coupon for 10 year or longer tenor offering from India ever achieved by any Indian Corporate.

The mix of investors is diverse, from across Singapore, HK, London, Taiwan, Japan and Middle East which includes 77% bid from Asian investors and 23% from EMEA investors. The Bankers to the deal were – Citi, DBS Bank Ltd, MUFG, SBICAP and Standard Chartered.

ONGC CMD Mr. Shashi Shanker said that ONGC funds its operations from internal accruals and it has capacity to do the same in future also; the offering of USD bond however was important to set a benchmark for ONGC group which has become one of the most integrated energy major post acquisition of HPCL. It is anticipated that once the benchmark is set, it will facilitate group entities to raise funds at a competitive price.

ONGC Director (Finance) Mr. Subhash Kumar added that the yield achieved in the exercise was one of the best which further reinforces the credentials of ONGC as an integrated energy major.  It is also expected that this issuance will enhance the group visibility in international market which will also pave way for upgraded corporate governance.

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This announcement does not constitute nor form part of any offer, solicitation or invitation to sell, issue or subscribe for securities in the U.S. or any other jurisdiction. No securities have been or will be registered under the U.S. Securities Act of 1933 (as amended) (the "Securities Act") or the securities laws of any state of the U.S. or any other jurisdiction. If an offering proceeds, the securities will only be offered and sold through offshore transactions outside the United States in reliance on Regulation S under the Securities Act (“Regulation S”) and may not be offered or sold within the United States absent registration except in accordance with Regulation S or pursuant to any other applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules, the regulations thereunder and the applicable state or local securities laws of the United States. No public offering is being made in the United States or in any other jurisdiction where such an offering is restricted or prohibited or where such offer would be unlawful. Neither this announcement nor any portion hereof may be sent or transmitted into the U.S. or any jurisdiction where it is restricted or prohibited or unlawful to do so. Any failure to comply with these restrictions may result in a violation of the Securities Act or the applicable laws of other jurisdictions. This announcement does not constitute or form part of any offer, solicitation or invitation to sell, issue or subscribe for securities to investors in India (whether by way of private placement, public issue or otherwise). Any Notes may only be sold in accordance with the external commercial borrowing regulations of the Reserve Bank of India. Details of Programme Establishment may be filed with Indian Stock Exchanges as required under applicable laws.

Issued by
Corporate Communications,
ONGC, New Delhi