"Bharat Petroleum Seeks $3.8 Billion Loan for Refinery Project"

Bharat Petroleum Corp. (BPCL) is negotiating with lenders to secure approximately ₹31,000 crore ($3.8 billion) in what could become the largest local-currency loan in India this year. The loan aims to support the expansion of BPCL’s Bina refinery in Madhya Pradesh, as the country ramps up its petrochemical capacity to meet rising plastics demand.

State Bank of India (SBI), the nation's largest lender, is expected to lead the transaction. Expressions of interest have already been received, with Punjab National Bank, Bank of Baroda, and Bank of India also involved in the 15-year loan. Additional lenders may join, with the loan anticipated to be priced around 8.4%.

The funds will be used for a significant investment of ₹49,000 crore to build an ethylene cracker plant at the Bina refinery. If finalized, this would mark the largest rupee-denominated loan in India for 2024, according to Bloomberg data.

SBI Capital Markets Ltd., the investment banking arm of SBI, is advising on the deal. Representatives from BPCL and the participating banks have yet to comment on the ongoing discussions.

HBL