MUMBAI, Aug 4: Haldia Petrochemicals Limited (HPL), which is setting up a greenfield naphtha based integrated petrochemical complex in West Bengal, has planned to go for a $ 300 million (Rs 1,080 crore) external commercial borrowing (ECB) programme.

HPL has appointed ANZ Investment Bank as the lead financial arranger for ECB programme which would be structured into two tranches. According to ANZ Investment, upto $ 150 million would be mopped up on the back of deferred payment guarantees to be provided by leading Indian financial institutions/banks and upto $ 150 million as a commercial loan with limited recourse to HPL.

The first petrochemical project in the country's eastern region, being promoted by West Bengal Industrial Development Corporation (WBIDC), the Chatterjee Petrochem (Mauritius) Company (CPC) and the Tatas, has a total capital outlay of $ 1.44 billion (Rs 5,170 crore) and a debt-equity ratio of 1.6:1. As per the plan, 38.3 per cent of the capital outlay of HPL would be raised through equity participation by WBIDC (Rs 432.9 crore), CPC (Rs 432.9 crore), Tatas (Rs 144.4 crore) and public offering/private placement (Rs 970.8 crore).

According to Rana Kapoor, general manager of ANZ, the investment bank is bullish on the petrochemial sector in general and, given the strong sponsorship, sound financial structure and project economics, on HPL in particular.

HPL had already commenced construction work at the 1,005 acre site at the confluence of Haldia and Hooghly rivers and adjacent to the Haldia port.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.