ONGC Videsh Plans to Raise up to $900M Via Bond Issue

NEW DELHI – ONGC Videsh Ltd., the overseas investment arm of state-run Oil & Natural Gas Corp. (500312.BY), plans to raise up to $900 million by issuing a dollar bond in the first quarter of 2013 to fund its recent acquisition of oil fields in Azerbaijan, its managing director said late Thursday.

"We will raise $900 million or less in the first quarter of next year," D.K. Sarraf told reporters late Thursday. He said it was currently cheaper to borrow in dollars, and given that the company purchased its assets in dollars and asset and liabilities are shown in dollars in their balance sheet, they would be "going overseas" for the bond issuance.

In September, ONGC Videsh agreed to buy a 2.7% stake from Hess Corp. in the Azeri, Chirag and Guneshli fields in Azerbaijan and its 2.4% interest in the associated BTC pipeline for a total of $1 billion.