SBI for Mundra

Vol 15, PW 16 (23 Feb 12) News in Brief
     

GSPC has selected SBI Caps to be the financial consultant for its proposed 5m t/y Mundra LNG terminal, promoted jointly with Adani Gas.

GSPC subsidiary GSPC LNG decided to hire SBI Caps during its January 28 board meeting, according to a Gandhinagar source. “SBI Caps has plenty of experience handling LNG projects of this size,” he says.

“It was the financial advisor for Petronet-LNG’s Dahej and Kochi LNG projects also.” State-owned SBI Caps, he adds, is one of the largest financial institutions of its kind in India.

Strangely, GSPC didn’t even consider any of the 15 Expressions of Interest (EoIs) it received for this contract after issuing an EoI notice in mid-December last year. GSPC called for a financial advisor to help place the remaining 25% equity in Mundra with strategic partners and financial institutions.

But it decided in the end to work with old ally SBI Caps, which previously helped it with a private equity placement in 2010. GSPC holds a 50% stake in Mundra while Adani holds 25%.