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Hindustan Petroleum Corporation (HPCL) has entered into a long-term agreement for the operations and maintenance of its newly-commissioned bitumen terminal at Bathinda, with HMEL (HPCL-Mittal Energy). The agreement is for storing, handling and dispatching the product.
HMEL has recently set up a bitumen blowing unit with a capacity of 550 million tonnes per annum different grades of bitumen plant at Guru Gobind Singh Refinery, Bathinda. As per the agreement, HPCL has agreed to handle HMEL bitumen terminal in addition to the white oil terminal.
Earlier, HPCL has signed a long-term product offtake agreement with HMEL under which it will offtake the entire production. Both the agreements put together will give HPCL 550 million tonnes of bitumen in the northern region.
Hindustan Petroleum Corporation Limited is also planning to raise as much as Rs. 3,000 crores from international bond markets to fund refinery expansion. HPCL Director Finance J. Ramaswamy said, “We are planning to raise funds in the international bond markets and it should happen by the end of this year.”
It received shareholders approval last month to raise Rs. 12,000 crores by selling debentures and bonds. HPCL has a debt of Rs. 23,000 crores, of which Rs. 11,000 crores is dollar denominated. Last year, HPCL made its debut in the international bond market by raising US$ 500 million in 10-year bonds at a semi-annual coupon rate of 4%.
