SBI to give $1-billion loan to Gautam Adani for a mine project in Queensland

New Delhi, November 18: The State Bank of India (SBI) will provide a loan of $ 1 billion (over Rs 6,000 crore) to Adani Mining, the Australian subsidiary of Adani Enterprises, for its mine project in Queensland, reported the

The Adani group is headed by Gautam Adani. The SBI have signed a memorandum of understanding which provides for a credit facility of up to $ 1 billion. The Mou is according to a detailed assessment of the company’s mine project at Carmichael, near Clermont in Western Queensland.

While contacted by the Indian express, a senior SBI official declined to share the details. Already, Adani has borrowings of close to Rs 65,000 crore. The SBI’s loan offer comes, when banks are reporting sluggish loan demand and a rise in bad loans. At this time many companies especially infrastructure firms lines up at banks for debt restructuring.

SBI shares shot up by 5.44 per cent to Rs 2,940.15 on the BSE on Monday after the loan announcement. Adani Enterprises gained 1.44 per cent to Rs 495.70.

“The MoU with SBI is a significant milestone in the development of our Carmichael mine. It is a unique asset that lies at the heart of our investment in Queensland and Australia, and aligns perfectly with our clear vision for delivering energy security in the Indian market,” said Gautam Adani, who is considered to be close to Prime Minister Narendra Modi.

The loan was announced while Adani was in Brisbane with a business delegation for the G20 summit, which Modi attended over the weekend. The Adani group’s proposed plan to build a $ 7 billion coal mine was cleared on Monday by Australia’s Queensland state, which also announced a major investment in rail infrastructure to support the Indian conglomerate’s mega project.