India: GAIL Gets USD 100 Million Loan

GAIL (India) Limited has tied up a term loan of US $ 100 million from Bank of Tokyo – Mitsubishi UFJ. The loan agreement was signed between Mr. P K Jain, Director (Finance), GAIL (India) Limited and Mr. Naoki Isetani, General Manager, Bank of Tokyo yesterday.

The term of the loan is 5 years. This term loan agreement comes close on the heels of an earlier term loan of US $ 150 million taken by GAIL from Bank of Tokyo in June 2011. The loan agreement signed now is first in the series of three tie-ups that GAIL plans to enter into for a total ECB of US $ 300 million.

The loan funds would be utilised to partly fund the ongoing expansion/new projects of GAIL of around US $ 9 billion. GAIL is presently implementing projects to lay 5,500 km at an estimated cost of Rs. 25,000 crore (approx. USD 5 Billion). When completed, the capacity of GAIL pipelines would increase to over 300 MMSMD from the present 175 MMSCMD. GAIL is also doubling the petrochemical capacity of its plant at Pata from 446,000 TPA at present to 900,000 TPA by 2014.

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LNG World News Staff, December 06, 2011