Diversified group Videocon Industries Ltd has secured an around US$2.196bn 14.25-year standby letter of credit facility from 12 Indian banks, according to sources.
SBI Capital Markets and IDBI Bank were joint bookrunners for the SBLC, which would secure offshore financings for the group's capital expenditure for its oil and gas businesses in Mozambique, Brazil and Indonesia.
The 12 participating banks are: IDBI Bank (US$589m), State Bank of India (US$500m), Export-Import Bank of India (US$300m), ICICI Bank (US$225m), Central Bank of India (US$179m), Union Bank of India (US$150m), Bank of Baroda (US$53.5m), Corporation Bank (US$50m), Punjab National Bank (US$50m), Syndicate Bank (US$50m), State Bank of Hyderabad (US$40m) and State Bank of Mysore (US$9m).
The SBLC facility is borrowed by Videocon Industries Ltd and wholly-owned subsidiary Videocon Oil Ventures Ltd, on an 'obligor-co-obligor' structure, according to a source. The offshore borrowing entity would be Cayman Islands-registered Videocon Hydrocarbon Holdings Ltd, an overseas subsidiary of Videocon.
The SBLC facility was signed on September 27 and matures in 2026.
Videocon is a diversified business with interests ranging from consumer electronics to oil and gas. Videocon Industries Ltd is the group's flagship company.