Bank of Baroda Underwrites USD 500 Million Facility for ONGC Videsh Arm in GIFT City
Bank of Baroda underwrites USD 500 million loan for ONGC Videsh's GIFT City subsidiary, OOIL. The 5-year facility supports OVL’s global treasury operations.
GANDHINAGAR – In a significant move for India’s offshore banking sector, Bank of Baroda (BoB), acting as the Sole Mandated Lead Arranger, has underwritten a USD 500 million, five-year Foreign Currency Term Loan Facility for OVL Overseas IFSC Limited (OOIL). OOIL is a wholly owned subsidiary of ONGC Videsh Limited (OVL) and is registered within the Gujarat International Finance Tec-City (GIFT City).
High-Profile Drawdown Ceremony
The drawdown ceremony was held at Bank of Baroda’s IFSC Banking Unit (IBU) in GIFT City. The event saw participation from senior leadership, including:
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Shri Lalit Tyagi, Executive Director, Bank of Baroda.
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Shri Anupam Agarwal, Director (Finance), ONGC Videsh Limited.
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Other senior dignitaries from both the banking and energy sectors.
Strategic Importance of the Facility
The transaction underscores the evolving role of GIFT City as a global financial nerve center for Indian Public Sector Undertakings (PSUs).
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Centralized Treasury Hub: Shri Anupam Agarwal highlighted that OOIL serves as a strategic, centralized treasury hub for ONGC Videsh, allowing the multinational energy giant to access global capital on highly competitive terms.
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BoB’s Global Reach: Shri Lalit Tyagi emphasized the bank's expanding footprint in foreign currency lending. BoB’s IFSC Banking Unit has notably grown to become the bank's third-largest branch outside India, specializing in syndicated credit and cross-border financing.
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Shift in Financing: Historically, major energy PSUs relied on foreign banks in hubs like Singapore or London for dollar funding. This deal signals a shift where Indian banks are now capable of underwriting large-scale foreign currency exposures from within India’s own offshore ecosystem.