New Delhi, May 18: Multilateral lending agency Asian Development Bank (ADB) will give Petronet LNG Ltd (PLL) a $75-million dollar loan and partial credit guarantee for the public sector LNG import firm's Rs 2,700-crore Dahej project. "ADB has given an in-principle clearance of $75-million (Rs 375 crore) for the project by way of long-term loan/partial credit guarantee," PLL CEO and managing director Suresh Mathur said here.

PLL, which recently tied-up Rs 2,145 crore long-term debt for the five million tonnes Dahej project, would use the partial guarantee for credit enhancement of a bonds issue by the company after project completion. PLL will begin importing liquefied natural gas from Qatar from first quarter of 2004.
"We plan to come out with a bonds issue of Rs 500 crore early next year to replace part of the project debt," Mathur said.
A consortium of 19 banks led by State Bank of India has offered PLL Rs 1,845 crore as long term loan and Rs 250 crore to meet its working capital requirement. Besides, the banks have also extended Rs 750 crore stand-by letters of credit (LCs) for discharging payment obligations for gas purchase and ship charter charges. Bureau Report