State-run Oil and Natural Gas Corp (ONGC) has provided its first guarantee in 15 years for a rupee-denominated bond, likely to be issued by a subsidiary this quarter, three sources aware of the matter said on Thursday.

ONGC Petro Additions Ltd (OPAL), in which ONGC owns more than 95 per cent stake, is looking to raise ₹5,000 crorethrough a multiple-tranche bond sale, they said.

However, with rating agency Crisil designating OPAL's bonds at AA+ two months ago, ONGC stepped in to enhance its appeal to investors, the sources said, requesting anonymity as they are not authorised to speak to media.

ONGC’s unconditional and irrevocable guarantee enhances the credit rating to provisional AAA (CE).

ONGC will ensure OPAL's commitments are duly met within the stated timelines, the rating agency

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