OREANDA-NEWS. December 8, 2011. GAIL (India) Limited has tied up a term loan of USD  100 million from Bank of Tokyo - Mitsubishi UFJ. The loan agreement was signed here between Mr. P K Jain, Director (Finance), GAIL (India) Limited and Mr. Naoki Isetani, General Manager, Bank of Tokyo yesterday.

The term of the loan is 5 years. This term loan agreement comes close on the heels of an earlier term loan of USD  150 million taken by GAIL from Bank of Tokyo in June 2011. The loan agreement signed now is first in the series of three tie-ups that GAIL plans to enter into for a total ECB of USD  300 million.

The loan funds would be utilised to partly fund the ongoing expansion/new projects of GAIL of around USD  9 billion. GAIL is presently implementing projects to lay 5,500 km at an estimated cost of Rs. 25,000 crore (approx. USD 5 Billion). When completed, the capacity of GAIL pipelines would increase to over 300 MMSMD from the present 175 MMSCMD. GAIL is also doubling the petrochemical capacity of its plant at Pata from 446,000 TPA at present to 900,000 TPA by 2014.

GAIL is one of the leading public enterprises with a consistently excellent financial track record. Turnover and Profit After Tax during the last ten years have shown a compounded annual growth rate of 14 per cent and 12 per cent respectively. The Company recorded a Turnover of Rs. 32,459 crore (USD 6.5 billion approx.) and Profit After Tax of Rs. 3,561 crore (USD  710 million approx.) in the year 2010-11. The Debt-Equity ratio of the Company is 0.17 and the Debt Service Coverage Ratio (DSCR) of 9 times as on 30-Sep-2011.