In a bid to acquire Hindustan Petroleum Corp Ltd (HPCL), State-owned Oil and Natural Gas Corp (ONGC) has borrowed Rs 4,000 crore from ICICI Bank. This is an additional lending on top of over Rs 18,000 crore that the Public Sector Undertaking (PSU) has taken from three other banks for meeting its acquisition demand of Rs 36,915 crore.
The private lender recently extended its one-year loan with the PSU in order to fund the acquisition of government’s 51.11 per cent stake in HPCL.
ONGC had recently announced that it entered into loan agreements with Punjab National Bank (PNB), Bank of India (BOI) and Axis Bank Ltd for lending of Rs 18,060 crore for the acquisition.
The pact made with PNB, BOI and Axis Bank is for Rs 10,600 crore, Rs 4,460 crore and Rs 3,000 crore credit respectively.
The brand is most likely to ink more loan agreements to disburse Rs 36,915 crore to the government before the month-end.
Reportedly, this acquisition is all set to create India’s first integrated oil company. This is going to be ONGC’s biggest acquisition till date and second buyout this fiscal post its Rs 7,738 crore acquisition of 80 per cent stake in Gujarat State Petroleum Corp’s KG basin gas block.