Chambal Fertilisers to raise Rs 1,058 crore from SBI, Axis bank

NEW DELHI: Chambal Fertilisers will raise Rs 1,057 crore loan from SBI and Axis Bank to establish new urea unit at its existing plant in Kota, Rajasthan.
Besides, the company will also avail a Rs 300 crore bank guarantee from State Bank of India. It will be in favor of the Government of India as per the New Urea Investment Policy - 2012 requirements.

In a regulatory filing, Chambal Fertilisers & Chemicals Ltd today said it has executed a loan agreement with SBI for term loan of Rs 500 crore and with Axis Bank for term loan of Rs 557.85 crore.

The bank guarantee is issued in favor of the Government of India as per the New Urea Investment Policy - 2012 requirements.

Last month, the company had said it has entered into an agreement with four banks including SBI, HDFC Bank, Axis Bank and Exim Bank for availing foreign currency loan of USD 550 million.

Sources said that with these two fund raising activities, the company has completed financial closure for establishing new urea plant.