Shardul Amarchand Mangaldas advises HPCL Rajasthan Refinery on refinancing and working capital financing arrangements

Shardul Amarchand Mangaldas & Co advised HPCL Rajasthan Refinery Limited, a joint venture between Hindustan Petroleum Corporation Limited and the Government of Rajasthan, on multiple financing arrangements supporting its 9 MMTPA greenfield refinery-cum-petrochemical complex in Rajasthan.

These included the part refinancing of existing project loans through ₹8,000 crore in rupee term loans from a consortium comprising the National Bank for Financing Infrastructure and Development, India Infrastructure Finance Company Limited, ICICI Bank Limited, UCO Bank and Punjab & Sind Bank; a ₹2,000 crore working capital demand loan from Bank of Baroda; and fund-based and non-fund-based credit facilities aggregating to ₹400 crore from ICICI Bank.

The refinancing transaction featured a bilateral lending structure supported by a consolidated security package held in trust by a common Security Trustee, requiring consistency across the financing and security documentation.

SAM acted as legal counsel to HPCL Rajasthan Refinery across these arrangements, advising on financing and security structuring, applicable regulatory considerations, and the negotiation and finalisation of the relevant finance and security documents. 

The transaction team consisted of Deepto Roy (Partner), Dnyanraj Desai (Partner), Abhinav Rawat (Principal Associate), Aditya Menon (Associate) and Prashant Dubey (Associate).

The term loan proceeds will be utilised for the part refinancing of existing project loans, while the working capital facilities will support HRRL’s working capital requirements and help address cash flow mismatches associated with the project, including its allied utilities and facilities at Pachpadra, District Balotra, Rajasthan.

The project, with a refining capacity of 9 MMTPA and integrated petrochemical production capacity of 2.4 MMTPA, is expected to strengthen India’s refining and petrochemical value chain, enhance supply security and support industrial development.

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