Investors balk as ONGC chances loose covenants

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By Morgan Davis
28 Nov 2019

Oil and Natural Gas Corp (ONGC), the largest crude oil and natural gas company in India, tussled with bond investors during marketing for its latest dollar deal this week. Investors pushed back against ONGC’s demanding terms and forced a last-minute flip-flop over a change of control clause. Morgan Davis reports.

ONGC’s bond was no easy sell, said one syndicate head on the deal. The problems started early, when the borrower tried to market its notes to investors with different change of control terms from those it had offered in the past. ONGC guaranteed a $1bn dual tranche ...

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