Adani Enterprises says Kutch Copper achieves financial closure

The consortium of banks has sanctioned and signed agreement for the entire debt requirement of Rs 6071 crore for the Phase 1 of the Kutch Copper (KCL) project.

Kutch Copper (KCL), a subsidiary of Adani Enterprises (AEL), is setting up a greenfield copper refinery project for production of refined copper with 1 MTPA (million tons per annum) in two phases.

For the phase 1 capacity of 0.5 MTPA, KCL has achieved financial closure through a syndicated club loan for the greenfield copper refinery project at Mundra, Gujarat, with the execution of financing documents with the consortium of banks led by State Bank of India (SBI). The other consortium members are Bank of Baroda, Canara Bank, EXIM Bank of India, Indian Bank, Punjab National Bank, and Bank of Maharashtra.

KCL will be part of the materials, metals and mining vertical of the Adani portfolio.

"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. "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."

AEL is the incubation arm of Adani Portfolio. AEL is leading decarbonization of industries and mobility through Adani New Industries. Other next-generation of AEL's strategic business investments are centered around airport management, roads, data center and water infrastructure which has significant scope for value unlocking.

AEL posted a 15.7% decrease in consolidated net profit to Rs 304.32 crore in Q4 FY22 as against Rs 360.93 crore in Q4 FY21. Net sales in the fourth quarter stood at Rs 24,865.52 crore, up 83.8% from Rs 13,525.07 crore reported in the same period last year.

Shares of AEL rose 2.47% to Rs 2161.50 on Friday, 24 June 2022.

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