Letter of Comfort approved for raising debt up to Rs 5,400 crore for ONGC Petro Additions Ltd

Oil PSU major ONGC has informed that ONGC Petro Additions Ltd, promoted by ONGC and a multibillion JV has received the approval of shareholders, conferring a Letter of Comfort for raising debt to Rs 5400 crore.

The shareholders of the Company had accorded approval for providing a Letter of Comfort (LOC) for raising debt by ONGC Petro additions Ltd (OPaL) up to a value of Rs 5,400 crore on 30th December 2023 for six months, the company stated.

Further, subject to the approval of shareholders, the Board has accorded its approval for extension/revalidation of Letter of Comfort (LOC) to prospective banks/ investors for an amount up to Rs 5,400 crore to be raised by OPaL within twelve months from the date of approval of shareholders, it added further.

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Subsequently, ONGC is providing LOC to OPaL for raising debts to Rs 5,400 crores subject to the approval of Shareholders.

Additionally, LOC will enable the JV to raise resources at competitive rates without any impact on the listed entity.

ONGC holds 49.36% equity shares in OPaL, whereas GAIL holds 49.21% and GSPC holds 1.43% equity share capital. OPaL is a Joint Venture of ONGC.

Subject to shareholders approval, LOC is to be issued to prospective banks/ investors for an amount up to Rs 5,400 crore to be raised by OPaL within twelve (12) months from the date of approval of shareholders, the company said in an exchange filing.

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