ONGC Videsh Bond Issuance Awarded the Best Corporate Bond Deal from India 2016

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

About  ONGC

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