ONGC issues rare dollar bond to repay bridge loan

India’s national oil company Oil and Natural Gas Corp ONGC issued a rare $800 million dual-tranche bond on Monday night. The proceeds will be used to refinance a bridge loan taken for its acquisition of a stake in energy assets in Azerbaijan from New York-based Hess.

ONGC is 69%-owned by the Indian government and a rare name in debt markets. According to Dealogic, it has not issued a dollar bond since 1995.

Many Asian borrowers such as ONGC are now tapping debt markets after long absences, or for the first time, as bank lending is constrained. Meanwhile, funding levels in the bond market have never been cheaper,...