Saraf and Partners | View firm profile
New Delhi, India, January 29, 2025: Saraf and Partners acted as the lender’s legal counsel to a consortium of 6 (six) banks consisting of State Bank of India, Bank of India, Punjab National Bank, Canara Bank, Exim Bank and Union Bank of India (“Lenders”) in relation to a rupee term loan with certain sub-limits such as letter of credit, capex letter(s) of credit (inland/foreign)/standby letters of credit/buyer’s credit for an aggregate amount of INR 31,802,00,00,000 (Indian Rupees Thirty-One Thousand Eight Hundred Two Crores) (“Facility”) availed/to be availed by Bharat Petroleum Corporation Limited (Maharatna company under the control of Government of India) (“Borrower”) for the purposes of part financing the construction and implementation of a petrochemical complex which will produce downstream polymers/products like Linear Low Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), Polypropylene (PP), Benzene, Toluene, Mixed Xylene etc., along with brownfield expansion of the Borrower’s refinery capacity at Bina, Madhya Pradesh from 7.8 (seven point eight) MMTPA to 11 (eleven) MMTPA, to primarily cater to the feed requirements of petrochemical plants (“Project”). The total cost of the Project is INR 48,926,00,00,000 (Indian Rupees Forty-Eight Thousand Nine Hundred Twenty-Six Crores) (collectively “Transaction”).
The Facility will fuel the expansion of the Borrower’s refinery at Bina, Madhya Pradesh, including the construction of a cutting-edge petrochemical complex. This expansion will significantly enhance India’s petrochemical production capabilities, featuring:
-
- A 1.2 million tonnes/year ethylene cracker unit
- Production facilities for linear low-density polyethylene (LLDPE), high density PE (HDPE), polypropylene (PP), bitumen, and benzene.
- Increased capacity for gasoline, diesel, and aviation turbine fuel production.
Saraf and Partners (S&P) acted for Lenders on all aspects of the transaction, including drafting, reviewing, negotiating and finalising of the financing documents and the relevant security documents and it also played a pivotal role in providing strategic advice for consummation of the Transaction. In addition to the above, the team was instrumental in conceptualising positions in the financing documents that would operationally and logistically be possible for the Borrower to comply with, given that the Borrower requires Government of India’s approvals for its conduct and operation.
The transaction team at S&P was led by Abir Lal Dey (Partner) with significant contributions from members of his team.
Cyril Amarchand Mangaldas acted for Bharat Petroleum Corporation Limited, in the Transaction.
