HPCL-Mittal joint venture refinery achieves financial

Mumbai: Hindustan Petroleum Corporation Ltd (HPCL) has announced the financial closure of Guru Gobind Singh Refineries Ltd. (GGSRL), its joint venture with Mittal Energy Investments Pte. Ltd, Singapore, for setting up a 9 MMTPA greenfield refinery at Bathinda in Punjab.

A consortium of 26 lenders led by the State Bank of India have committed a 14-year project finance term loan aggregating to Rs7,800 crore to Guru Gobind Singh Refineries Ltd. (GGSRL).

The transaction is one of India''s largest syndicated project finance deal and the lenders to the project include SBICAP, Allahahad Bank, Andhra Bank, Bank of Baroda, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Indian Bank, Oriental Bank of Commerce, Punjab National Bank, Punjab and Sind Bank, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of India, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra, State Bank of Travancore, Syndicate Bank, The Federal Bank, Union Bank of India, United Bank of India, UCO Bank, Vijaya Bank and the Life Insurance Corporation of India (LIC).

SBI Capital Markets Ltd. (SBICAP) is the sole financial advisor and arranger for India''s largest FDI under public/private partnership. The syndication was over subscribed by Rs800 crore.

GGSRL is a joint venture between HPCL and Mittal Energy Investments Pte Ltd Singapore. The money will be used to construct a 9MMTPA greenfield refinery at Bhatinda in Punjab.

The project , which has a debt- equity ratio of 1.5:1 , envisages an outlay of Rs13 ,789 crore. HPCL and Mittal Investments will be equal partners in the venture (49 per cent each). The remaining 2 per cent will be raised from financial i Investors.