Petronet to Raise Rs 1000 Crore Through Bonds Issue

Petronet LNG one the India's biggest liquefied natural gas importer, is planning to raise Rs 1000 crore through bonds issue this financial year to pay off its existing debt. The money raised through the bonds issue will be repayable in maximum 10 years. Petronet had total borrowings of Rs 2374 crore as on March 31, 2015. "The funds will be used to refinance the existing debt and to meet the capex requirement of the company," Petronet said in its annual general meeting (AGM).

In FY15, company had refinanced a part of its rupee term loans by substituting it with low cost rupee bonds in the Indian markets for Rs 1000 crore. Also, the company has proposed to raise FII shareholding in the company from 24-30 per cent of paid up capital.

Currently equity share capital of the company is Rs 750 crore out of which 50 per cent is held by four promoters of the company that are state-owned GAIL, Indian Oil, Bharat Petroleum and ONGC. Another 10 per cent is held by GdF of France and the remaining 40 per cent is with public including FIIs.

The company will also complete expansion of its Dahej LNG import facility in Gujarat to 15 million tonnes per annum from current 10 million tonnes by end of 2016.

Petronet LNG is further looking for expansion of Dahej terminal to 17.5 million tonnes and it is in process of finalizing business model for the same. 

The company is looking for shareholder's approval to raise Rs 1000 crore through issuance of secured/unsecured non-convertible debentures through private placement during the financial year ending March 31, 2016.

Petronet noticed many international LNG suppliers have shown interest to participate in company’s planned project of 5 million tonnes a year LNG import terminal at Gangavaram on the east coast. The company is in "the process to have a robust commercial structure in place before seeking approval of the Board to committing funds to this project," Petronet said in the AGM.