Essar Energy gets $300 mn credit to repay bridge loan
New Delhi: London-listed Essar Energy plc on Thursday said it has got an additional borrowing of USD 300 million that will be mostly used to repay an existing bridge loan.
The company said, "it has upsized its existing USD 150 million loan facility with Axis Bank to USD 450 million, with the Export-Import Bank of China (Exim Bank) providing USD 300 million as a new lender."
The USD 150 million facility, originally agreed with Axis Bank, was signed and disbursed in September 2012 and allowed for an increase to USD 450 million. Both facilities mature in 2017.
"The proceeds of the upsized loan will be used to repay an outstanding amount of USD 233 million under an existing bridge loan facility and for general corporate purposes," the company said in a statement.
Essar Energy Chief Financial Officer Deepak Maheshwari said: "The upsizing of the existing Axis facility following Exim Bank's agreement to lend a further USD 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 time-frames," he added.