Essar will seek $1 billion loan from CDB through external commercial borrowings

$1M USD

Funder	Unspecified Chinese Government Institution
Recipient Organization	Essar Group
Country	India
Start Date	May 21, 2013
End Date	Sep 04, 2026
Duration	4,854 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`42618`

Grant Description

Essar will seek $1 billion loan from CDB through external commercial borrowings On May 21, 2013, India's Essar Oil signed a three-way MoU on a "funding-for-fuel" agreement with CDB and PetroChina. This debt financing deal is to raise $1 billion of external commercial borrowings.

Ravi Ruia, vice-chairman, Essar Group; Hu Huaibang, chairman CDB, and Lihua Wang, CEO, PetroChina International signed the agreement in Mumbai.

For the next 7-10-years, Essar Oil's refinery in Vadinar will export high-end Euro 5 grade gasoline and other petroleum products. The value of the export will be 2-3 times the loan amount.

📋 Staff Comments

it's a three-way financing deal

📚 Sources & References

Essar to ink deal with Chinese cos to tap billion dollar funds for Vadinar products
Essar Taxies to China as Li Lands in India
Essar Oil to sign fuel-for-cash deal with China Development Bank
Essar signs oil-for-loans deal with CDB
PetroChina to raise $1 billion ECBs Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.