SBI, other PSU banks commit funding of Rs 6,071 crore to Adani Group for copper operations

27 Jun 2022 , 11:54 AM

Adani Group, a ports-to-energy conglomerate, entered the copper manufacturing industry by securing financing from public sector lenders for a 1 million tonnes per year operation at Mundra in Gujarat.

According to a statement from the firm, Kutch Copper Ltd. (KCL), a subsidiary of Adani Enterprises Ltd. (AEL), is building a brand-new copper refinery project to produce refined copper at a rate of 1 million tonnes annually over two phases.

Through a coordinated club loan for the greenfield copper refinery project in Mundra, Gujarat, KCL has attained financial closure for the phase-1 capacity of 0.5 million tonnes. It has carried out “Agreements for financing with the group of banks led by State Bank of India (SBI). The other members in the consortium include Bank of Maharashtra, Canara Bank, EXIM Bank of India, Indian Bank, and Punjab National Bank “The statement read.

For the whole debt demand of Rs6,071 crore for Phase 1 of the KCL Project, the syndicate of banks has agreed and signed an agreement. The project, according to Vinay Prakash, Director of Adani Enterprises Ltd., has the necessary technologies in place, and construction work at the site is moving along nicely. Production is expected to start in the first half of CY 2024.

The lenders’ legal assistance was provided by Desai & Diwanji Advocates, while their financial advisor was SBI Capital Markets Ltd. KCL sought legal advice from Saraf and Partners Law Offices. KCL was founded on March 24, 2021, with the intention of engaging in copper-related operations like the production of copper cathodes, copper rods, and related goods.

The Adani Group’s incubator is called Adani Enterprises Limited (AEL). The following companies were incubated under AEL: Adani Transmission Limited, Adani Power Limited, Adani Green Energy Limited, Adani Total Gas Limited, and Adani Wilmar Limited.