Petronet LNG Limited has informed the Exchange about Agreements. In terms of Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, we wish to inform that Petronet LNG Limited has signed a loan agreement to borrow secured Rupee Term Loan of Rs. 6,000 crore each, aggregating to Rs. 12,000 crores, from the consortium of State Bank of India (SBI) and Bank of Baroda, with SBI leading the consortium. The loan shall be utilised towards financing the Petrochemicals Project of 750 KTPA of Propane Dehydrogenation (PDH) and 500 KTPA of Polypropylene (PP) including propane and ethane handling facilities at Dahej, Gujarat and other capital expenditure of the Company.The requisite details are enclosed herewith as Annexure-1
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Petronet LNG has signed a loan agreement to borrow Rs. 12,000 crore in secured Rupee Term Loans from a consortium led by State Bank of India, with Bank of Baroda as the other lender. The loan will fund a major petrochemicals project at Dahej, Gujarat, comprising a 750 KTPA Propane Dehydrogenation (PDH) plant and a 500 KTPA Polypropylene (PP) plant, along with propane and ethane handling facilities. It will also cover other capital expenditure needs of the company. SBI is leading the consortium arrangement.
This large borrowing signals a significant expansion into petrochemicals beyond the company's core LNG business. While it enables capacity growth, it will substantially increase the company's debt burden and execution risk on a large-scale project.