HPCL to raise Rs 2,000 cr via private placement

Hindustan Petroleum Corporation plans to raise Rs 2,000 crore through debt over the next six months to fund its refinery upgrade projects, and oil and gas upstream activities, a senior company official said today.

"We have already received the board approval to raise funds through bonds and/or debentures up to 20 bln rupees within a period of six months to meet funding requirements," the official said.

He said HPCL will undertake the borrowing in tranches as and when required, either in domestic or international market, on a private placement basis.

The company has already availed syndicated external commercial borrowings in Japanese yen equivalent to $350 mln, for a five-year tenure, to meet the capital expenditure requirements.

Currently, HPCL has total outstanding loan of around Rs 13000 crore. It has board approval for overall borrowings, other than debentures, of Rs 17500 crore.

The company's borrowings have increased significantly during the current financial year to March due to the inability to pass on the increase in international crude prices to consumers.

"HPCL has taken up major projects like clean fuel projects at Mumbai and Visakhapatnam refineries, joint ventures, exploration and production related activities, which involve huge capital expenditure," the official said.

In refinery, HPCL plans to invest over Rs 300 crore in green and clean fuel projects at Mumbai and Vizag refineries.