BPCL arm Bharat Oman Refineries to raise Rs 737 crore ECB for Bina refinery

MUMBAI: Bharat Oman Refineries, a company promoted by state-run Bharat Petroleum Corporation with equity participation from Oman Oil Company, is raising $140 million (Rs 737 crore) of external commercial borrowing for its refinery project at Bina in Madhya Pradesh.

BORL will raise the US-dollar term loan at an annual interest rate of 3.45% above Libor, or London inter-bank offered rate. Bankers said that the company was able to get an attractive rate since the ECB has irrevocable and unconditional guarantee from BPCL.

"We are raising the ECB for financing the balance capex at Bina refinery. This would be the last of the fund-raising initiatives for this phase which entailed investment of Rs 12,700 crore," a BPCL spokesperson said confirming the plan.

"We have opted for ECB as we found that the interest rate was more attractive than any other option available now," the spokesperson told ET.

Deutsche Bank AG is the mandated lead arranger for the ECB. The consortium of banks financing the 8-year term loan includes Deutsche Bank, DBS, BNP Paribas, and Societe Generale, sources said.