ONGC Videsh had raised Rs 525 million by a seven-year bond in July 2014 to partially finance its acquisition of a stake price $4.12 billion within the Mozambique block. These bonds, bearing a set coupon of two.750% every year and assured by mum or dad ONGC, are due in July. The corporate holds a 16% stake in Mozambique’s offshore Rovuma Space 1.
The ONGC unit must faucet the debt market once more for reimbursement of about three-fourths of the Rs 525 million due, whereas the steadiness may be repaid utilizing inner cashflows, an individual with information of the matter stated. The corporate will as soon as once more go for international forex bonds, the individual stated.
ONGC Videsh raised about $700 million in debt in November to repay loans of $775 million. Nearly 10% of this mortgage was repaid utilizing inner assets.
Manufacturing on the Mozambique fuel subject has been delayed by a number of years and with the anticipated cashflows but to start, the corporate has to refinance earlier rounds of debt. The sphere is predicted to start out manufacturing in 2024.