Bank of Baroda underwrites $500 million foreign currency loan for ONGC Videsh arm

Bank of Baroda has underwritten a $500 million, five-year foreign currency term loan facility for OVL Overseas IFSC Limited (OOIL), a wholly owned subsidiary of ONGC Videsh Limited (OVL) registered at GIFT City. The bank acted as the sole mandated lead arranger for the facility.

The drawdown ceremony for the loan was held at Bank of Baroda’s IFSC Banking Unit in GIFT City, with senior officials from Bank of Baroda and ONGC Videsh in attendance.

According to the bank, the transaction reflects its participation in syndicated foreign currency financing and its role in facilitating cross-border funding through the International Financial Services Centre. OOIL has been set up by ONGC Videsh to function as a centralised treasury entity to support the company’s overseas operations.

ONGC Videsh officials said the use of GIFT City enables access to global capital and supports the company’s international expansion strategy. Bank of Baroda, in turn, said its IFSC Banking Unit remains a key part of its international operations, with activities spanning syndicated lending, retail banking and trade finance.

GIFT City has been used by Indian public sector and private entities for offshore financing, as banks and corporates leverage the IFSC framework for foreign currency transactions and global fund-raising.