Bank of Baroda Secures $500 Million Term Loan for ONGC Videsh Subsidiary
In a significant move to bolster cross-border financing capabilities, Bank of Baroda has successfully underwritten a USD 500 million five-year Foreign Currency Term Loan Facility for OVL Overseas IFSC Limited (OOIL), marking a major milestone for both the banking institution and the oil and gas sector.
Transaction Ceremony Highlights GIFT City’s Growth
The drawdown ceremony for this substantial term loan facility took place at the Bank of Baroda’s IFSC Banking Unit in GIFT City, attended by senior officials from both Bank of Baroda and ONGC Videsh Limited (OVL). This transaction serves as a testament to the increasing maturity of GIFT City, showcasing its capacity as a pivotal hub for international financing.
Commitment to Corporate Finance Solutions
Shri Lalit Tyagi, Executive Director of Bank of Baroda, emphasized the importance of this underwriting, stating that it demonstrates the bank’s strong position in the realm of syndicated foreign currency loans. He highlighted that this facility not only supports ONGC’s global operations but also reinforces the bank’s commitment to nurturing its long-standing relationship with the ONGC Group by providing a comprehensive suite of corporate finance solutions.
ONGC Videsh’s Strategic Growth through GIFT City
Shri Anupam Agarwal, Director of Finance at ONGC Videsh, expressed optimism about the role of GIFT City in the company’s growth strategy. He articulated that the establishment of OOIL as a centralized treasury platform is essential for consolidating and expanding their international business. Agarwal further acknowledged Bank of Baroda’s role in facilitating access to competitive global capital, reflecting GIFT City’s status as a leading jurisdiction for offshore financing.
Positioning as a Key Player in the Financial Ecosystem
The IFSC Banking Unit of Bank of Baroda plays a crucial role in the bank’s international expansion, serving as its third-largest branch outside India, with a diverse portfolio that includes syndicated credit, retail banking, and trade finance. The bank is determined to leverage this platform to strengthen its position as a pioneering entity within the rapidly developing GIFT City ecosystem.
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