Page 52 - Plastics News November 2017

BUSINESS NEWS

Indian Oil to raise Rs700 crore

via bonds to fund Ennore LNG

terminal

ndian Oil Corp. Ltd (IOCL) is planing to sell bonds
Iworth Rs700 crore to part-finance the construction of
its upcoming natural gas terminal at Ennore in Chennai.
According to reports the country’s largest oil marketing
company is building the Rs5,000-odd-crore terminal for

import, storage and regasification of liquified natural gas
(LNG) at Ennore’s Kamarajar Port. The terminal will be
owned by Indian Oil LNG Pvt. Ltd, an equal joint venture
with a partner who is yet to be finalized. “The company
has decided to raise Rs700 crore through compulsory
convertible debentures (CCDs) for part-financing capital
expenditure. The fund-raise will complete shortly,” said
an investment banker aware of the development. He spoke
on the condition of anonymity.
In an emailed response, IOCL said, “The joint venture has
raised part of the funds through CCDs through the first
tranche and is in the process of raising the second tranche
through CCDs.” “IOCL has not been able to find an equity
partner yet. Till the company finds one, it has decided
to raise funds and finance the project,” said the second
official cited above. Construction of the terminal, which
began in August 2015, is now 80% complete, IOCL added.
When completed, this will be the first LNG regasification
terminal on India’s east coast. “Increased global gas
availability and the lower gas prices have come as welcome
developments to provide a big boost to the gas sector in
India and presents attractive growth opportunities to
players in the business,” IOCL said.

Plastics News N ovember 2017 52