OPAL to issue 5-year bonds, bankers say
India's ONGC Petro Additions Ltd (OPAL) is planning to raise 10 billion rupees ($114 million), including 8 billion rupees of a greenshoe option, through sale of bonds maturing in five years, three merchant bankers said on Friday.
OPAL, in which ONGC 
ONGC owns more than 95%, has invited coupon and commitment bids for the issue on Tuesday, they said.
Earlier this month, Reuters reported that ONGC provided a corporate guarantee to OPAL's bonds, which is its first such guarantee to a rupee-denominated debt of a subsidiary in 15 years, to raise its credit appeal.
Currently, OPAL has outstanding bonds worth 17.60 billion rupees. It had last tapped the bond market 15 months ago and raised 1.60 billion rupees through a three-year bond issue at 8.39%.
The company did not reply to a Reuters email seeking comment.
Here is the list of deals reported so far on October 24:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
OPAL | 5 years | To be decided | 2+8 | October 28 | AAA (CE)(Icra, Crisil) |
Shriram Finance | 2 years and 5 months | To be decided | 7.5+7.5 | October 27 | AA+ (Crisil) |
Axis Finance | 3 years | 7.23 | 5 | October 23 | AAA (Care) |
Sundaram Finance | 3 years | 7.05 | 12.65 | October 23 | AAA (Crisil) |
*Size includes base plus greenshoe for some issues
($1 = 87.7250 Indian rupees)
