ONGC Videsh Ltd. (OVL), the overseas arm of Oil & Natural Gas Corporation (ONGC), plans to raise about $1 billion through a dollar bonds issue early next year to fund its recent acquisition in Azerbaijan.

“We are planning a dollar bonds issue in first quarter of 2013,” a top source said. “Ultimately, what we raise will depend on a lot of factors, but yes we are looking at raising around $1 billion.” OVL had in its biggest purchase since acquiring Russia-focussed Imperial Energy, in September announced buying U.S. energy firm Hess Corp’s stake in Azeri, Chirag and Guneshli (ACG) group of oil fields in the Central Asian nation for $1 billion. The company has already appointed merchant bankers for raising the debt, the source said.

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