Financial Daily from THE HINDU group of publications
Friday, Feb 24, 2006
Financial Daily from THE HINDU group of publications Friday, Feb 24, 2006 |
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Corporate
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New Projects Markets - IPOs HPCL Punjab refinery financial closure by May Pratim Ranjan Bose
Kolkata. Feb. 23 , HPCL is expecting to declare financial closure of the Rs 9,806-crore Guru Govind Sagar Refinery project in Punjab by April-May. The company has already received commitments for finance from six banks and is expected to soon appoint a merchant banker for structuring the loan-finance instrument. The debt-equity ratio for the 9-million-tonne refinery project has been pegged at 1.5:1. The foreign debt component, linked to orders for equipment, will be finalised at the time of financial closure. The oil major recently floated a global tender seeking expression of interest for project management contract (PMC) for the project. Though the possibility of an early IPO to finance the project is not ruled out, sources said the financing options would be firmed up following finalisation of the front-end engineering and design (FEED) package. "We are at present waiting for the FEED package to be completed, after which we would simultaneously appoint the PMC contractor and firm up the debt finance," a senior level HPCL official told Business Line. The FEED package is being prepared by Engineers India Ltd. Initially proposed to be taken up through a 50:50 joint venture route with a foreign partner, HPCL has committed "upfront payment" of its equity contribution at the time of financial closure.
More Stories on : New Projects | IPOs | Petroleum | Hindustan Petroleum Corporation Ltd
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