Sbi and Other Psu Banks Pledge Rs 6,071 Crore to Adani Group for Copper Business

Energy ports conglomerate Adani Group has ventured into copper manufacturing by securing funding from public sector lenders for a 1mtpa unit at Mundra in Gujarat. “Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd (AEL), is setting up a new copper refinery project for the production of refined copper with 1 million tons per year in two phases,” the company said. company in a press release.

For the Phase 1 capacity of 0.5 million tonnes, KCL has achieved financial close through a syndicated loan for the Mundra copper refinery project, Gujarat. It has executed “financing documents with the consortium of banks led by State Bank of India (SBI). Other members of the consortium are Bank of Baroda, Canara Bank, EXIM Bank of India, Indian Bank, Punjab National Bank and Bank of Maharashtra,” the statement said.

The consortium of banks has sanctioned and signed an agreement for the full debt requirement of Rs 6,071 crore for phase 1 of the KCL project. Vinay Prakash, director of Adani Enterprises Ltd, said the project has the required technology and construction work at the site is progressing well and is expected to start production in the first half of calendar year 2024.

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“It will be one of the largest copper refining complexes in the world, with benchmark ESG performance standards, leveraging advanced technology and digitalization. This financial closure allows us to accelerate the project and signifies the commitment of the Adani group. to mobilize the necessary resources and complete the project on schedule,” he said. KCL will be part of the materials, metals and mining vertical of the Adani group.

SBI Capital Markets Ltd acted as financial advisor and Desai & Diwanji Advocates as legal advisor to the lenders. Saraf and Partners Law Offices acted as legal counsel to KCL. KCL was incorporated on March 24, 2021 for the purpose of undertaking copper-related businesses – related businesses such as the manufacture of copper cathodes and rods and related products. Adani Enterprises Limited (AEL) is the incubation arm of the Adani Group. Adani Ports & SEZ Limited, Adani Transmission Limited, Adani Power Limited, Adani Green Energy Limited, Adani Total Gas Limited and Adani Wilmar Limited were incubated at AEL.

First post: STI

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