New Delhi: In what could be one of the largest credit facilities extended by an Indian bank for an overseas project, the State Bank of India (SBI) will provide a loan of $ 1 billion (over Rs 6,000 crore) to Adani Mining, the Australian subsidiary of Adani Enterprises, for its mine project in Queensland.
The Adani group, headed by Gautam Adani, and the SBI have signed a memorandum of understanding which provides for a credit facility of up to $ 1 billion, subject to the detailed assessment of the company’s mine project at Carmichael, near Clermont in Western Queensland.
The MoU with SBI is a significant milestone in the development of our Carmichael mine. It is a unique asset that lies at the heart of our investment in Queensland and Australia, and aligns perfectly with our clear vision for delivering energy security in the Indian market,” said Gautam Adani, who is considered to be close to Prime Minister Narendra Modi.
According to the annual report of Adani Enterprises, the company had a long-term borrowing of Rs 49,584 crore at the end of March 31, 2014 and short-term borrowings of Rs 15,394 crore. It has posted a net profit of Rs 218 crore and a turnover of Rs 3328 crore for the quarter ended September 2014.
Adani Mining CEO and country head, Jeyakumar Janakaraj, added that the MoU and other agreements nearing their conclusion send a clear signal to the market that the company’s project is on track for first coal in 2017.
Bureau Report
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