L&L Partners acted as lenders’ legal counsel for 3 separate consortiums of banks led by State Bank of India, in relation to the financial assistance in the form of term loan facilities and working capital facilities made available to Hindustan Urvarak and Rasayan Limited for the purpose of financing the construction and development of 3 natural gas-based urea manufacturing complexes situated in Barauni (Bihar), Sindri (Jharkhand) and Gorakhpur (Uttar Pradesh) each with a urea capacity of 3850 tons per day and ammonia capacity of 2200 tons per day (“Projects”) including financing the cost overrun and working capital component of the Projects.
Hindustan Urvarak & Rasayan Limited is a joint venture between NTPC Limited, Indian Oil Corporation Limited, Coal India Limited, Fertilizer Corporation of India Limited, and Hindustan Fertilizer Corporation Limited.
The L&L team comprised of Partner, Aniket Sengupta, and Associates – Samarth Sharma and Aditya Bhayal.
The Firm was involved in drafting, negotiating and finalizing all financing and security documents and advising and assisting on completion of closing formalities.
Significance of the Transaction:
This transaction involved the financing of all three Projects with a total manufacturing capacity of 11550 tons per day for urea and 6600 tons per day for ammonia. This is one of the largest projects financing transactions in the fertilizer sector in India. These Projects are being set up with a view to making India self-sufficient regarding its fertilizer requirements and to eliminate the need for the import of fertilizers.