India’s Oil and Natural Gas launches $1 billion notes in two tranches tighter than talk

By Paul A. Harris

Portland, Ore., July 19 – Oil and Natural Gas Corp. Ltd. launched a $1 billion two-part offering of notes (Baa2/BBB-) on Tuesday, according to a market source.

The deal includes $400 million of 5.5-year notes launched at Treasuries plus 175 basis points, versus initial guidance of 195 bps.

A $600 million tranche of 10-year notes launched at Treasuries plus 220 bps, versus initial guidance of 235 bps.

Orders came to $1.2 billion across both tranches at the New York open, a source said.

Citigroup and Standard Chartered Bank are joint global coordinators and joint bookrunners. DBS Bank Ltd., Mizuho Securities, MUFG and SMBC Nikko are also joint bookrunners.

Standard Chartered will bill and deliver.

The issuing entity will be indirect 100% subsidiary ONGC Videsh Vankorneft Pte. Ltd.

The notes come with a change of control triggered if the government of India ceases to own, directly or indirectly, more than 50% of either Oil and Natural Gas or Videsh Vankorneft.

The multinational oil and gas company is based in Dehradun, India.

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