RPL signs $550 mn syndication deal

Bankers associated with the deal were of the opinion that "the pricing of the facility is extremely fine" and that the same should be seen in the light of the fact that RPL is just six months into operations, and is yet to declare a year’s financial results. RPL will declare its half-yearly results on October 30.

In the first quarter of this fiscal, RPL registered a net-profit of Rs 324 crore on a sales turnover of Rs 5,893 crore. RPL currently accounts for 25 per cent of the refining capacity in the country. This $550-million L/c syndication will be the third put through by RPL this fiscal.

The first such deal by RPL was a $250-million facility during end-June this year. ABN Amro Bank was the arranger and took on an exposure of $40 million; co-arrangers Fuji Bank and Credit Lyonnais had an exposure of $30 million each; Toronto Dominion Bank, Punjab National Bank, ICICI Bank $25 million each; and Bank of Baroda and Bank of India $15 million each. Lead managers, Barclays Plc and Union Bank of India, took $10 million apiece.

The second deal was concluded in end-July and was for $450 million. This L/csyndication was oversubscribed by $75 million, and was arranged by four foreign banks: Bank of America, Credit Agricole Indosuez, HSBC, and StanChart. The transaction included a $350 million L/c facility and $75 million green-shoe option.

HSBC was the sole L/c issuing, confirming and negotiating bank for this facility. Other participating banks were ANZ Grindlays Bank, ICICI Bank, Punjab National Bank, Dena Bank, State Bank of Hyderabad, State Bank of Patiala, and Bank of Maharashtra.