HONG KONG, Dec 5 (Basis Point) - The multi-tranche facility
for Bharat Petroleum Corp Ltd (BPCL) backed by a standby letter
of credit from State Bank of India has been increased to US$700m
and signed by three banks, according to sources.
As previously reported, the loan had an original target of
US$600m and bids were sought for three- and five-year tranches.
It includes an option to increase to up to US$900m. SBI Capital
Markets is the bookrunner.
The loan comprises a US$400m three-year tranche paying an
all-in of 275bp and a US$300m five-year tranche paying an all-in
On the US$400m three-year tranche, SBI took US$300m and was
joined by Bank of Baroda with US$100m. On the US$300m five-year
tranche, SBI came in with US$250m and was joined DBS Bank with
As previously reported, the loan also drew responses from
local banks Allahabad Bank, Bank of Baroda, HDFC Bank and
Syndicate Bank and foreign lenders Deutsche Bank, DNB Bank and
SBI is looking to sell down part of its hold, sources said.
Signing was on November 23.
BPCL has signed SBLCs totalling US$1.15bn, paying a 60bp
fee. Further SBLC-backed loans may be in the works, according to
Proceeds fund BPCL's capital expenditure for the Rovuma
Basin off the coast of Mozambique. The company holds a 10% stake
in that oil and gas field.
The loan is borrowed via the BPRL International BV, a
subsidiary of BPCL unit Bharat PetroResources Ltd.