ONGC Videsh (OVL) has raised USD 1 billion by a US dollar bonds issue for financing its acquisition of 15 percent stake in Russia’s second biggest oil field Vankor.

According to its Managing Director Narendra K Verma, OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), raised USD 600 million through a 10 year bond at a coupon rate of US treasury rate plus 2.20 percent and another USD 400 million through a 5.5-year maturity bond at an interest rate of US treasury rate plus 1.75 percent.

He has said that “It is one of the lowest cost funding rates in the current scenario.”

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