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Time of India
6 days ago
- Business
- Time of India
India's top LNG importer Petronet seeks $1.4 bn local loan
India's largest importer of natural gas Petronet LNG Ltd. is seeking a loan of at least 120 billion rupees ($1.4 billion) for a new petrochemical plant and an LNG terminal , according to people familiar with the matter. Local lenders including Axis Bank , State Bank of India and Union Bank of India are considering to join the facility, which is among the company's largest fundraising exercises, said the people, who asked not to be identified discussing private matters. The borrower is seeking bids from banks in groups or individually, they said, adding that SBI Capital Markets has been appointed as adviser for the deal. The facility for triple-A rated Petronet comes at a period of muted activity for India's loans space, where bank lending grew 9.5% as of June 27, the lowest growth rate since March 2022, according to the latest data from the Reserve Bank of India. If the financing goes through, it would be one of the biggest local currency loans for the country this year, according to Bloomberg-compiled data. Spokespeople for Axis Bank , Petronet, SBI, SBI Capital Markets and Union Bank of India didn't immediately reply to emails from Bloomberg News seeking comment. Proceeds from the loan will partially fund the construction of a new petrochemical complex in Dahej, located in the southwest coast of Gujarat in India, the people said, adding that it will help diversify the company's earnings beyond the LNG space. The project is estimated to cost 206.85 billion rupees, according to the company's website. The New Delhi-based firm is also setting up a separate five million tons land-based LNG import terminal at Gopalpur, located on the east coast in Odisha. The latest loan could carry a tenor of more than 10 years, the people said. The pricing could be lower than SBI's one-month marginal cost of funds based lending rate of 7.95% currently, a benchmark gauge of local currency borrowings, two of the people said.
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Business Standard
7 days ago
- Business
- Business Standard
Petronet seeks $1.4 bn loan to fund petrochemical plant, LNG terminal
By Saikat Das and Rakesh Sharma India's largest importer of natural gas Petronet LNG Ltd. is seeking a loan of at least 120 billion rupees ($1.4 billion) for a new petrochemical plant and an LNG terminal, according to people familiar with the matter. Local lenders including Axis Bank, State Bank of India and Union Bank of India are considering to join the facility, which is among the company's largest fundraising exercises, said the people, who asked not to be identified discussing private matters. The borrower is seeking bids from banks in groups or individually, they said, adding that SBI Capital Markets has been appointed as adviser for the deal. The facility for triple-A rated Petronet comes at a period of muted activity for India's loans space, where bank lending grew 9.5per cent as of June 27, the lowest growth rate since March 2022, according to the latest data from the Reserve Bank of India. If the financing goes through, it would be one of the biggest local currency loans for the country this year, according to Bloomberg-compiled data. Spokespeople for Axis Bank, Petronet, SBI, SBI Capital Markets and Union Bank of India didn't immediately reply to emails from Bloomberg News seeking comment. Proceeds from the loan will partially fund the construction of a new petrochemical complex in Dahej, located in the southwest coast of Gujarat in India, the people said, adding that it will help diversify the company's earnings beyond the LNG space. The project is estimated to cost 206.85 billion rupees, according to the company's website. The New Delhi-based firm is also setting up a separate five million tons land-based LNG import terminal at Gopalpur, located on the east coast in Odisha. The latest loan could carry a tenor of more than 10 years, the people said. The pricing could be lower than SBI's one-month marginal cost of funds based lending rate of 7.95per cent currently, a benchmark gauge of local currency borrowings, two of the people said.
Time of India
7 days ago
- Business
- Time of India
India's top LNG importer Petronet seeks $1.4 bn local loan
Petronet LNG is seeking a ₹120 billion ($1.4 billion) loan to fund a petrochemical plant in Dahej and an LNG terminal in Gopalpur. SBI Capital Markets is advising the deal, with Axis Bank, SBI, and Union Bank likely participants. If approved, it would be among India's biggest rupee loans this year, diversifying Petronet's earnings beyond LNG. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's largest importer of natural gas Petronet LNG Ltd. is seeking a loan of at least 120 billion rupees ($1.4 billion) for a new petrochemical plant and an LNG terminal , according to people familiar with the lenders including Axis Bank State Bank of India and Union Bank of India are considering to join the facility, which is among the company's largest fundraising exercises, said the people, who asked not to be identified discussing private matters. The borrower is seeking bids from banks in groups or individually, they said, adding that SBI Capital Markets has been appointed as adviser for the facility for triple-A rated Petronet comes at a period of muted activity for India's loans space, where bank lending grew 9.5% as of June 27, the lowest growth rate since March 2022, according to the latest data from the Reserve Bank of India. If the financing goes through, it would be one of the biggest local currency loans for the country this year, according to Bloomberg-compiled for Axis Bank , Petronet, SBI, SBI Capital Markets and Union Bank of India didn't immediately reply to emails from Bloomberg News seeking from the loan will partially fund the construction of a new petrochemical complex in Dahej, located in the southwest coast of Gujarat in India, the people said, adding that it will help diversify the company's earnings beyond the LNG space. The project is estimated to cost 206.85 billion rupees, according to the company's New Delhi-based firm is also setting up a separate five million tons land-based LNG import terminal at Gopalpur, located on the east coast in latest loan could carry a tenor of more than 10 years, the people said. The pricing could be lower than SBI's one-month marginal cost of funds based lending rate of 7.95% currently, a benchmark gauge of local currency borrowings, two of the people said.
Mint
16-06-2025
- Business
- Mint
India well-positioned amid global trade gloom, tariff wars: SBI Capital Markets
Despite a modest improvement in May 2025, global volatility lingers amid a bleak trade outlook and prolonged tariff wars, though India remains well-positioned, supported by fiscal and monetary measures, SBI Capital Markets said in a report on Monday. The report, Momentum & Murmurs – Trade Winds, Policy Turns, and Geopolitical Undercurrents (June 2025), also warned that US inflation could rebound once stocks of cheaper imports run out, potentially forcing the Federal Reserve to keep rates elevated for longer, raising the risk of a drawn-out tightening cycle. 'While May'25 saw a symptomatic improvement, we are still far from a cure for global volatility. Global growth and trade continue to have a morose outlook, slight gains notwithstanding,' the report said. 'The tariff war seems to have become a protracted affair, engendering structural changes in its wake as optimism of post-Cold War multilateralism finally dies down. India seems attractively positioned by fiscal and monetary policy playing a critical role in navigating these generational changes,' it added. The global economy continues to reel under rising geopolitical tensions and a renewed wave of protectionism. In April, US President Donald Trump announced a 27% reciprocal tariff on Indian goods, mirroring duties imposed on other trading partners. Though subsequently scaled down for India and others, the move stoked global unease, signalling a return to protectionist policies and heightening fears of renewed trade and supply chain disruptions. At the same time, the war in Ukraine and conflicts across the Middle East are straining critical supply routes, fueling inflation, and weakening business sentiment. The World Bank has cut its global growth forecast to 2.3% for 2025, 0.4 percentage points below its January estimate, and now projects 2.4% in 2026 and 2.6% in 2027, both slightly lower than earlier predictions. Collectively, these shocks are clouding the global outlook and mounting pressure on living standards worldwide. SBI Capital Markets flagged deeper structural shifts reshaping the world economy, noting a strategic reorientation away from decades of global integration. 'Yet key structural shifts and renewed risks are hard to ignore. The world continues its pivot from multilateralism to smaller trade blocs, from USD centrality to a more mixed currency regime, and from global interdependence to strategic autonomy,' the report said. 'With fiscal deficits still wide and transmission gaining traction, bond vigilantes have reemerged—driving US Treasury yields higher and raising the prospect of a more sustained tightening cycle,' it added. The World Bank expects US growth to slow to 1.4% in 2025, before edging up to 1.6% in 2026 and 1.9% in 2027. In contrast, India's growth outlook remains stable. The Bank maintained its FY26 forecast for India at 6.3%, consistent with its April South Asia Economic Focus report. To be sure, the World Bank reports India's data on a fiscal-year basis, unlike the calendar-year format it uses for other economies. 'Despite global headwinds, India posted a robust 6.5% y/y real GDP growth in FY25, supported by fair domestic demand—both PFCE and GFCF exceeded expectations. High-frequency indicators, such as GST collections, point to a continued pickup in economic activity,' the SBI Capital report said. 'Government and household capital expenditure remain firm, anchoring investment momentum, while private capex is more selective and concentrated in a few sectors,' it added. According to the report, the RBI front-loaded easing with a 50-bps rate cut in June 2025 and a 100-bps CRR cut scheduled for September to boost credit growth in rate-sensitive segments and improve monetary transmission. However, the RBI's shift to a 'Neutral' stance tempered market expectations, indicating that the rate-cut cycle may be nearing its end. 'We now anticipate at most one more 25-bps cut, contingent on incoming data,' the report said. Banks, it noted, may face short-term margin pressure as EBLR-linked loans reprice quickly, while deposit costs, especially from older high-rate flows, remain sticky. 'Surplus system liquidity and the upcoming CRR cut should ease funding pressures, supporting a margin rebound by CY26,' SBI Caps said. 'NBFCs, with limited EBLR exposure, gain a breather as funding costs reset lower, boosting spreads. Backed by strong capital, pristine asset quality, and recent record profits, banks are well placed to bear the squeeze,' it added.
Time of India
30-05-2025
- Business
- Time of India
Battery pack prices sink to $55/kWh — Will this spark India's energy storage surge?
New Delhi: Battery prices have fallen by nearly 50 per cent to around USD 55 per kilowatt-hour (kWh) in recent months, resulting in a significant correction in energy storage system tariffs, according to a report released by SBI Capital Markets. The report titled Returns Charge Ahead As Battery Prices Discharge notes that standalone Battery Energy Storage System (BESS) tariffs have stabilised in the range of ₹0.22–0.28 million per MW per month for two-hour storage configurations, following the decline in battery pack prices from about USD 115/kWh in December 2024 to USD 55/kWh as of May 2025. Indian battery prices are still slightly higher at USD 70–80/kWh. Battery costs constitute over 50 per cent of BESS capital expenditure. The report states that viability gap funding (VGF) of up to 40 per cent, capped at ₹2.7 million/MWh, continues to play a critical role in ensuring tariff sustainability. Without VGF, tariffs are expected to rise by over 30 per cent. 'To improve cost structure and enable tariff competitiveness, policy measures such as incentives for BESS and battery pack manufacturing, increased duties on containerised BESS imports, zero import duty on battery manufacturing equipment, and 5 per cent GST on key components should be prioritised,' the report said. As of March 2025, 31 GWh of standalone BESS tenders had been issued since March 2022, of which only 4.9 GWh were awarded. The majority of the tenders are for two-hour, two-cycle systems. A sharp reduction in tariffs has been observed post-October 2024, driven by declining input costs and improved market familiarity. The report projects that India will require 230 GWh of energy storage by FY32 and estimates an annual battery demand of 40 GWh over the next seven years, considering oversizing to meet technical guarantees. India has announced 150 GWh of domestic battery manufacturing capacity, but a large portion is expected to be diverted to the electric vehicle segment. The report states that China will remain the dominant supplier for battery imports in the near term. On the policy front, standalone BESS tenders remain availability-based, with a minimum 95 per cent availability requirement and 85 per cent round-trip efficiency. The typical contract tenure is 12 years. In contrast, firm and dispatchable renewable energy (FDRE) tenders involving wind, solar and battery storage remain complex and yield project-specific tariffs. These tenders have largely been awarded to traditional thermal power developers. The report also notes a shift in tender design from fixed capacity-based models to load-following and peak demand configurations. Agencies such as SECI are increasingly issuing round-the-clock and peak-based tenders, which now constitute a significant portion of new capacity being auctioned. India's solar-plus-storage systems have recently recorded record-low tariffs under ₹6/kWh, leading to increasing deployment potential across industrial and commercial use cases.
