HPCL plans to raise $250 mn in forex debt soon

After raising USD 300 million recently, Hindustan Petroleum Corporation (HPCL) is set to raise USD 250 million (about Rs 1,663 crores) through external commercial borrowing (ECB) to fuel its capex plan, a senior company official has said.
The state-run oil marketer has a capital spending plan of Rs 5,300 crore for the current fiscal and of Rs 45,000 crore until 2020.
"We have already raised USD 300 million some time back through the ECB route for our capex plan which is pegged at Rs 5,300 crore for the current year and Rs 45,000 crore through 2020. There is no requirement for working capital now," HPCL executive director for corporate finance, J Ramaswamy told PTI here last evening.

"We will be tapping the ECB route again soon to raise USD 250 million. We have already mandated State Bank of India and two Japanese banks-- Mizou and SMBC-- for the same. As and when we have capex requirement, we will raise the money," said Ramaswamy on the sidelines of the company's annual general body meeting here.
Giving the break-up of HPCL's capex plan for the next five years, he said out of Rs 45,000 crore capex by 2020, Rs 21,000 crore will be used for expansion of the Mumbai and Visakhapatnam refineries and Rs 14,000 crore to execute the joint ventures in refinery and natural gas projects.

The company has also earmarked Rs 9,000 crore for marketing and the balance Rs 1,000 crore of the total capex plan will be spent on setting up of renewable energy establishments.
The company has acquired a production field in Australia recently and is again on the lookout for a similar acquisition.
"We have recently acquired a production field in Australia and are looking for some more opportunities for similar acquisitions in future," he said.