ONGC establishes USD2 billion EMTN programme
Public sector energy major Oil and Natural Gas Corporation Limited (ONGC) has established a Euro Medium Term Note (EMTN) programme of USD2 billion that will be listed on Singapore Stock Exchange.
This is a significant achievement for ONGC as it is amongst select few corporates and India's first Oil & Gas public sector integrated energy major to set up an EMTN programme.
Shri Shashi Shanker, Chairman and Managing Director, ONGC said "This is a landmark achievement for ONGC, as setting up of EMTN Programme will further enhance our credit profile amongst global investor base. We have embedded structural features in the Programme which would allow ONGC, ONGC Videsh or its subsidiaries to access international markets within shorter time frame. We do believe this Programme will assist in meeting our strategic financing requirements for our organic or inorganic growth prospects true to our vision of becoming an integrated energy major of global reckoning."
The EMTN programme will allow the company to access international bond markets opportunistically to meet its funding requirements. Now, the company is at a better position to take the advantage of current low yield environment in international debt markets that will provide attractive tenor funding options.
On Thursday, the stock of ONGC closed at Rs. 123.40, up by Rs. 2.25 or 1.86 per cent as compared to previous close of Rs. 121.15 on the BSE. The stock had opened at Rs. 121.00 and hit an intraday high of Rs. 124.25 and intraday low of Rs. 119.55 apiece.