The 9 million tonnes a year refinery in Rajasthan was built at a cost of ₹79,459 crore, with HPCL (74 per cent) and Government of Rajasthan (26 per cent) as equity partners
Hindustan Petroleum Corp. (HPCL) has refinanced about ₹50,000 crore of debt at its Rajasthan refinery, securing a reduction of around 105 basis points in borrowing costs and targeting annual interest savings of about ₹1,000 crore through a broader restructuring of the project's finances, Chairman and Managing Director Vikas Kaushal said on Friday.
The refinancing, effective October 3, is expected to save the company about ₹470 crore to ₹550 crore annually, Kaushal told analysts on an earnings call.
Additional equity infusions, conversion of subordinated loans into equity and interest-free state support are expected to further ease the refinery's financing burden as HPCL ramps up operations at the facility.
The 9 million tonnes a year refinery in Rajasthan was built at a cost of ₹79,459 crore, with HPCL (74 per cent) and Government of Rajasthan (26 per cent) as equity partners.