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Essar Oil to raise $5bln

Posted by Yogesh on Thursday, 11 September, 2008

MUMBAI, Sept 11 – Indian oil refiner Essar Oil is close to raising $5 billion in loans from four banks to fund the expansion of its refinery in western India, three bankers with knowledge of the dealsaid on Thursday.

Essar will raise $3.5 billion in 12-year, rupee-denominated loans underwritten by top lender State Bank of India , ICICI Bank , the bankers said.

It will also raise $1.5 billion in foreign currency loan from Standard Chartered and ICICI Bank, they said.

“A couple of us have already signed the underwriters agreement. The other two will do it soon,” said one banker, who declined to be identified because he was not authorised to speak to the media.

Essar is spending $6 billion to expand its refining capacity in western Gujarat state to 680,000 barrels per day by 2010 from 210,000 barrels a day.

Source Reuters

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