Petronet LNG secures ₹12,000 crore loan from SBI, BoB consortium for Dahej project

Petronet LNG Limited has signed a secured Rupee Term Loan agreement of ₹12,000 crore with a consortium led by State Bank of India (SBI) and Bank of Baroda.

The loan, split equally between the two banks, will fund the company’s 750 KTPA Propane Dehydrogenation (PDH) and 500 KTPA Polypropylene (PP) project at Dahej, Gujarat, including propane and ethane handling facilities and other capital expenditure.

The loan carries a first pari-passu charge on all movable and immovable assets related to the PDH-PP

project and a second charge on existing movable fixed assets, to be released upon project commissioning. Security will be shared pari-passu among lenders and bondholders.

Earlier this month, Petronet LNG signed a 15-year binding term sheet with ONGC for ethane unloading and handling services, expected to generate around ₹5,000 crore over the contract term. Global brokerage Nomura has maintained a ‘Buy’ rating on the stock with a ₹360 price target.

Also read: ONGC, Petronet LNG sign 15-year ethane handling pact

In its Q2 results, Petronet LNG reported a net profit of ₹806 crore, down 5.3% quarter-on-quarter, on revenue of ₹11,009 crore. EBITDA stood at ₹1,117 crore with an improved margin of 10.15%. Ahead of the announcement, shares closed at ₹269, down 0.09%.