India's OVL Raises $2.2 Bn to Fund Mozambique Gas Asset Acquisition

ONGC Videsh Limited (OVL), the wholly-owned subsidiary of ONGC announced that it has raised close to $2.2 billion through a bond issue.

The state owned company intends to use the proceeds to refinance its bridge loans availed for the recently concluded acquisitions of 16% stake in Rovuma Area 1, offshore Mozambique. 

OVL along with Oil India bought 10 per cent stake in Mozambique gas asset from Videocon Industries for $2.48 billion in June last year. In August this year, OVL acquired another 10 per cent stake in the field from Anadarko Petroleum Corp for $2.64 billion. 

Mozambique has seen large natural gas discoveries in recent years, mainly offshore. Indian energy firms have been eyeing the East African region for supply of gas for the bourgeoning demand in the domestic market.