Bloomberg News

Mitsubishi UFJ Said to Offer Bharat Petroleum Lowest Loan Rate

October 10, 2011

Oct. 10 (Bloomberg) -- Bank of Tokyo-Mitsubishi UFJ Ltd. is offering a rate of about 235 basis points more than the London interbank offered rate to lend Bharat Petroleum Corp. $400 million for five years, according to two people familiar with the matter.

The rate is the lowest that Bharat Petroleum has received for the financing, one of the people said, asking not to be identified as details are private.

Bharat Petroleum, India’s second-largest state-run oil refiner, also received bids from several other banks, including one of more than 300 basis points over Libor, another person familiar with the matter said on Sept. 26. The rate includes interest and fees a borrower has to pay for a loan.

Proceeds will be used for capital expenditure in the second half of this financial year and the company has no further plans for any more overseas loans this fiscal year, the person said today.

Bharat Petroleum Chairman R.K. Singh didn’t answer a call to his mobile phone seeking comment.

--Editor: Katrina Nicholas

To contact the reporters on this story: Wendy Mock in Hong Kong at wmock3@bloomberg.net; Rakteem Katakey in New Delhi at rkatakey@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net


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