BPCL, ONGC pip Reliance in overseas fundraising

Thanks to aggressive acquisition of oil assets abroad, government-owned BPCL and ONGC are set to overtake Reliance Industries in overseas fundraising in 2016-17. Reliance was the topper among corporate India in raising funds during the past five years.

The change in the league tables comes against a backdrop of a slowdown in fundraising by Indian corporates during the year. Overseas fundraising by Indian companies slowed to $19.02 billion in 2016-17 from $21.06 billion in 2015-16.

BPCL and ONGC raised $4.9 billion in 2016-17 against $1.65 billion raised by Reliance. ONGC raised $2 billion and State Bank of India raised $1.7 billion.

Analysts said Reliance was slowing new investments and its requirements of funds had declined substantially. The state-owned oil companies, on the other hand, are raising funds for acquisitions abroad, which led to their need for dollar-denominated loans.

Reliance has the biggest appetite for funds, having raised $14.85 billion over the past five years to fund its telecom services and expand its petrochemicals capacity.

“Most of the fundraising by Reliance now is to refinance old loans and it refinanced loans worth $1.75 billion just this week,” said a banker.

Bharat Petroleum

Oil and Natural Gas Corporation Limited (ONGC)

Reliance Industries Limited (RIL)