MUMBAI: Adani Group has approached the country’s largest lender, State Bank of India (SBI), for a loan of Rs 14,000 crore to build a coal-to-polyvinyl chloride (PVC) plant in Gujarat’s Mundra, according to two people familiar with the matter.
The loan, one of the largest project credit proposals in recent months, is even larger than the 12,770-crore loan secured by Adani Enterprises’ Navi Mumbai International Airport in March. In addition, the Gautam Adani-led conglomerate recently raised 6,071 crore for a greenfield copper refinery project in Mundra.
The terms of the 15-year loan are still being worked out, but the plan is for SBI to underwrite the entire loan and sell some of it to other lenders, as was done with Navi Mumbai Airport, where other lenders took over the majority of the loan from SBI. According to the sources cited above, SBI will keep approximately 5,000 crore of the PVC project loan on its books. The project’s total initial investment is estimated to be 19,000 crore, with a mix of debt and equity.