OVL raises $2.23 billion to refinance Mozambique deal.

ONGC Videsh Ltd. (OVL), the foreign investment arm of Oil and Natural Gas Corporation Limited, has raised $2.23 billion from global markets through long-term bonds to refinance loans for acquiring a stake in an oil field in Mozambique.

The finely priced deal struck last night consists $750 million in five-year bonds, $750 million in 10-year bonds and euro 525 million in seven-year bonds.

Merchant bankers associated with the transaction said all tranches were priced extremely aggressively. The pricing for the five-year dollar bonds was US Treasury yields plus 160 basis points (bps) and for the 10-year dollar paper was US Treasury yields plus 207.5 bps. This is within OVL's fair value. The euro bonds were priced at MS+180.

BS