Essar Energy upsizes $150-m loan facility with $300-m Exim Bank credit

Our Bureau Updated - September 12, 2013 at 01:31 PM.

Essar Energy said it has upsized its existing $150-million loan facility with Axis Bank to $450 million, with the Export-Import Bank of China (Exim Bank) providing $300 million as a new lender.

The $150-million facility, disbursed in September 2012, allowed an increase to $450 million. Both facilities mature in 2017.

The increased loan will be used to repay an outstanding $233 million under an existing bridge loan facility, besides being utilised for general corporate purposes.

Deepak Maheshwari, CFO, Essar Energy, said: "The upsizing of the existing Axis facility following Exim Bank’s agreement to lend a further $300 million marks a further milestone in our programme to strengthen our balance sheet and improve liquidity within Essar Energy. We continue to make good progress with our refinancing activities across our power and oil and gas businesses to lower risk, lower costs and extend repayment maturity timeframes."

shanker.s@thehindu.co.in

Published on September 12, 2013 07:59