ONGC Videsh Limited (OVL), on Tuesday, said it had raised $800 million to part-finance its recent acquisition of interest in an oilfield in Azerbaijan.
OVL floated a five-year $300 million unsecured bond and a 10-year note for $500 million. The notes, which were unconditionally and irrevocably guaranteed by ONGC, were oversubscribed with an order book aggregating close to $3 billion from investor accounts, OVL said in a statement.
OVL said it would use the proceeds to replace bridge financing it availed itself of to acquire stake in the Azerbaijan field. The company had last month concluded a $1.001 billion deal to buy U.S. energy major Hess Corp’s 2.76 per cent stake in the Azeri, Chirag and the deep water portion of Guneshli fields in the Azerbaijan sector of the Caspian Sea, and 2.36 per cent of the associated Baku-Tbilisi-Ceyhan (BTC) pipeline.
The oilfield, which is located in the South Caspian Sea, about 95 km off the coast of Azerbaijan, is the largest oil and gas field complex in Azerbaijan and one of the largest producing oil fields in the world.
