+
Petronet Eyes Rs 120 Billion Loan for Expansion
OIL & GAS

Petronet Eyes Rs 120 Billion Loan for Expansion

India’s largest natural gas importer, Petronet LNG Ltd., is seeking a loan of at least Rs 120 billion (USD 1.4 billion) to help fund the construction of a new petrochemical plant and an LNG terminal, according to people familiar with the development.
Major domestic lenders including Axis Bank, State Bank of India (SBI), and Union Bank of India are reportedly considering participating in the facility, which would mark one of Petronet’s largest fundraising exercises to date. The company has appointed SBI Capital Markets as the adviser for the transaction and is inviting bids from banks either individually or in syndicates, the sources said, requesting anonymity due to the private nature of the talks.
The loan is being sought at a time when India’s loan market is relatively subdued, with overall bank lending growing 9.5 per cent as of 27 June—its slowest pace since March 2022, according to Reserve Bank of India data. Should the deal proceed, it could become one of the largest local currency loan agreements in India this year, based on Bloomberg-compiled figures.
Proceeds from the facility will partially fund the development of a major petrochemical complex in Dahej, located on the southwest coast of Gujarat, which aims to help diversify Petronet’s earnings beyond the liquefied natural gas sector. The project is estimated to cost Rs 206.85 billion, according to the company’s website.
In addition, the New Delhi-headquartered firm is developing a separate five-million-tonne land-based LNG import terminal at Gopalpur on Odisha’s east coast.
The loan may have a tenor of more than 10 years, and its pricing is expected to be below SBI’s current one-month marginal cost of funds-based lending rate of 7.95 per cent, two sources added.
Spokespersons for Petronet, SBI, Axis Bank, Union Bank of India, and SBI Capital Markets have yet to respond to Bloomberg News’ requests for comment.

India’s largest natural gas importer, Petronet LNG Ltd., is seeking a loan of at least Rs 120 billion (USD 1.4 billion) to help fund the construction of a new petrochemical plant and an LNG terminal, according to people familiar with the development.Major domestic lenders including Axis Bank, State Bank of India (SBI), and Union Bank of India are reportedly considering participating in the facility, which would mark one of Petronet’s largest fundraising exercises to date. The company has appointed SBI Capital Markets as the adviser for the transaction and is inviting bids from banks either individually or in syndicates, the sources said, requesting anonymity due to the private nature of the talks.The loan is being sought at a time when India’s loan market is relatively subdued, with overall bank lending growing 9.5 per cent as of 27 June—its slowest pace since March 2022, according to Reserve Bank of India data. Should the deal proceed, it could become one of the largest local currency loan agreements in India this year, based on Bloomberg-compiled figures.Proceeds from the facility will partially fund the development of a major petrochemical complex in Dahej, located on the southwest coast of Gujarat, which aims to help diversify Petronet’s earnings beyond the liquefied natural gas sector. The project is estimated to cost Rs 206.85 billion, according to the company’s website.In addition, the New Delhi-headquartered firm is developing a separate five-million-tonne land-based LNG import terminal at Gopalpur on Odisha’s east coast.The loan may have a tenor of more than 10 years, and its pricing is expected to be below SBI’s current one-month marginal cost of funds-based lending rate of 7.95 per cent, two sources added.Spokespersons for Petronet, SBI, Axis Bank, Union Bank of India, and SBI Capital Markets have yet to respond to Bloomberg News’ requests for comment. 

Next Story
Resources

Pankaja Munde Lauds CREDAI-MCHI for Tree Plantation in Beed

CREDAI-MCHI has received a second letter of appreciation from Smt. Pankaja Gopinath Munde, Maharashtra’s Minister of Environment & Climate Change, for planting 2,000 tree saplings at Bhagvan Bhaktigad, Sawargaon Ghat in Patoda, Beed. The initiative aligns with the state’s Green Maharashtra Mission and Van Mahotsav drive. In her letter, the Minister commended CREDAI-MCHI’s environmental contribution as a step towards long-term ecological balance and climate resilience. Domnic Romell, President, CREDAI-MCHI, said: “We are deeply honoured to receive this recognition... The p..

Next Story
Technology

Rodic Launches Advisory Arm for Data-Driven Governance Reform

Rodic Consultants has announced the launch of Rodic Advisory & Technology, a strategic new vertical aimed at strengthening data-led governance, institutional reform, and infrastructure strategy. The move marks a key milestone in the company’s evolution from engineering consultancy to governance enabler. Positioned as a dedicated public sector think tank, the vertical will partner with government bodies, multilateral institutions, and public agencies to deliver advisory services rooted in real-time operational data, engineering intelligence, and implementation expertise. Service..

Next Story
Infrastructure Urban

IndoSpace Launches Largest Industrial Park in Pune Region

IndoSpace, India’s leading supply chain infrastructure platform, has launched IndoSpace Chakan V, its largest industrial and logistics park in the country. Spread across 188 acres in MIDC Chakan near Pune, the project involves an investment of USD 120 million and marks the company’s eighth park in the region, bringing IndoSpace’s Pune footprint to 525 acres. Strategically located along major highways—including the Mumbai-Pune Expressway, Pune-Nashik Highway, and Bengaluru-Mumbai Industrial Corridor—the park ensures seamless connectivity to key industrial hubs and ports across we..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?