Bharat Petroleum Corp. is in talks with lenders to raise about Rs 32,000 crore ($3.8 billion) in what could be the biggest local-currency loan in the country this year, according to people familiar with the matter.
The state-run oil company has already received expressions of interest, with the nation’s largest lender, State Bank of India, set to lead the transaction, the people said, asking not to be identified because the deliberations are private.
The proposed deal would help expand one of India’s biggest refiners when the country is boosting its petrochemical capacity to keep pace with growing plastics consumption. Banks' heightened interest also reflects their eagerness to increase lending to large corporates, broadening their credit business beyond small to midsize companies.
The people said that Punjab National Bank, Bank of Baroda, and Bank of India are some of the other lenders on the 15-year loan, and more may join. One person said it may be priced around the 8.4% level.
The people said the loan would be used for the company’s expansion of its Bina refinery in the central Indian state of Madhya Pradesh. BPCL is investing Rs 49,000 crore to build an ethylene cracker plant at the refinery.
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