Petronet LNG has secured a Rs 12,000-crore loan from a consortium of State Bank of India and Bank of Baroda to finance its petrochemicals project.
The loan, arranged through a competitive bidding process with SBI Capital Markets as advisor, allocates Rs 6,000 crore from each bank. In addition to funding the petrochemical venture, the loan will also support other capital expenditure needs of the company. Petronet, the largest LNG importer in India, is a joint venture between GAIL, ONGC, Indian Oil, and Bharat Petroleum, each holding a 12.5 percent stake.
The company operates LNG regasification terminals in Dahej (Gujarat) and Kochi (Kerala), with a total capacity of 22.5 million tonne per year. According to a company statement, "This partnership strengthens our financial flexibility to support strategic growth initiatives."