Petronet LNG Limited (PLL) has achieved a crucial development in its financial strategy with the successful implementation of the Rupee Term Loan Facility, an important financial agreement. A significant loan totaling Rs 12,000 crore has been arranged by a consortium under the leadership of the State Bank of India. This funding was equally contributed to by the Bank of Baroda, with both banks committing Rs 6,000 crore each.
This strategic financial initiative is mainly designated to fund PLL’s ambitious Petrochemicals Project, as well as other critical capital expenses necessary for the company’s growth and diversification strategies. The presence of esteemed dignitaries such as Shri Pankaj Jain, IAS, Secretary, MoP&NG and Chairman, PLL; Shri Challa Sreenivasulu Setty, Chairman, State Bank of India; Dr. Debadatta Chand, MD & CEO, Bank of Baroda; and Shri Akshay Kumar Singh, MD & CEO, PLL during the signing ceremony underscored the importance of this financial endeavor.
The competitive bidding process that led to the finalisation of the RTL facility was managed by SBI Capital Markets Ltd, which served as PLL’s financial advisor. This process not only demonstrated the robust confidence of the Indian banking system in PLL’s financial health and project viability but also ensured that the terms of the loan were favorable. Indeed, the terms secured were more advantageous than those initially assumed at the Decision Framework Report (DFR) and project approval stages.
The securing of the RTL facility under such favorable conditions is anticipated to considerably enhance the financial viability of the projects involved, thereby aligning with PLL’s strategic goals of growth and diversification. Furthermore, this financial arrangement ensures the provision of committed, long-term resources, which are crucial for the company’s ongoing and future projects.
With the execution of this Rupee Term Loan facility, PLL has significantly fortified its long-term funding structure. This arrangement not only provides the financial backbone for the timely execution of the Petrochemicals Project but also bolsters the company’s overall financial stability, ensuring it remains on a sustainable growth trajectory in the competitive energy sector.
