NRL signs agreement with SBI to raise $90 mn

The Numaligarh Refinery Limited (NRL) in the state has signed an agreement with State Bank of India to raise 90 Million US dollars to finance its capital projects.

This is the company's biggest financing deal since commissioning of the refinery in 2000 and it has for the first time accessed the route of dollar denominated financing through External Commercial Borrowing (ECB), a NRL release said here today.

The agreement was signed between NRL's Director (Finance) Nilmoni Bhakta and Assistant General Manager of State Bank of India (Commercial Branch), Guwahati P K Mohanty on April 27 last.

ECB source has been tapped as it was the most efficient and convenient mode of financing and since it is dollar denominated, the cost of borrowing will be much lower for NRL, the release said.

The loan will be syndicated by SBI at its London branch and NRL would utilise this borrowing primarily to part finance its ongoing wax project at its refinery complex in Numaligarh.

The estimated cost of the wax project is Rs 577 crore with foreign exchange component of Rs 80 crore and the plant is scheduled to be commissioned within the current financial year, the release added.