Adani Group achieves financial closure of Kutch Copper Limited project, raises entire debt of Rs 6,071 crore
Ahmedabad, June 26, 2022
The Adani Group today said it had achieved financial closure for Phase 1 of Kutch Copper Limited (KCL) through a syndicated club loan, with the execution of financing documents with the consortium of banks led by State Bank of India (SBI).
KCL, a subsidiary of Adani Enterprises Limited (AEL), the incubation arm of the group, is setting up a greenfield copper refinery project for production of refined copper with one million tonnes per annum (MTPA) capacity.
The project is being implemented in two phases and Phase 1 will have capacity of 0.5 MTPA, a press release from the company said.
The other consortium members are Bank of Baroda, Canara Bank, EXIM Bank of India, Indian Bank, Punjab National Bank, and Bank of Maharashtra. The consortium of banks has sanctioned and signed agreement for the entire debt requirement of Rs 6071 crore for Phase1 of the KCL Project, the release said.
“Aligned with ‘Atmanirbhar Bharat’, KCL aims to create the capacity for production of refined copper, which plays a vital role in strengthening the nation’s shift towards EV and renewables,” said Vinay Prakash, Director, Adani Enterprises Ltd.
“The project has requisite technology tied up and the construction works at the site are progressing well and is scheduled to commence production during first half of CY 2024. It will be one of the largest copper refinery complexes in the world, with benchmark ESG performance standards, leveraging state-of-the-art technology and digitilization.
"This financial closure enables us to accelerate the project and signifies the commitment of the Adani Group to mobilise the required resources and complete the project within the set timelines," he said.
Kutch Copper Limited will be part of the Materials, Metals and Mining vertical of the Adani Portfolio.
"KCL is deeply committed to all UN SDGs with a clear focus on SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure) and SDG 13 (Climate Action). KCL has a robust ESG philosophy focussed on benchmark production and manufacturing processes, which is based on overall AEL ESG framework," the release said.
SBI Capital Markets Ltd acted as the financial adviser and Desai & Diwanji Advocates acted as the lenders’ legal counsel. Saraf and Partners Law Offices acted as the legal adviser to KCL.