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Overview

China Eximbank provides $300 million USD loan to Essar Energy for the Stanlow Refinery Acquisition Refinancing Project

Commitments (Constant USD, 2023)$310,191,387
Commitment Year•2013Country of Activity•United KingdomDirect Recipient Country of Incorporation•MauritiusSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 11, 2013
Start (actual)
Sep 1, 2013
End (planned)
Sep 1, 2017
Last repayment
Sep 10, 2017

Geospatial footprint

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The proceeds of this loan were to be used by the borrower to repay $233 million USD under an existing bridge loan facility used for the acquisition of the Stanlow Refinery, the second largest oil refinery in the United Kingdom with a throughput capacity of 296,000 barrels daily located in Ellesmere Port, North West England. More detailed locational information can be found at https://www.openstreetmap.org/relation/15792544

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Cofinancing agencies

Private Sector

  • Axis Bank

Receiving agencies

Private Sector

  • Essar Energy plc

Loan desecription

China Eximbank provides USD $300 million loan to Essar Energy for the Stanlow Refinery Acquisition Refinancing Project in the United Kingdom in 2013

Interest type•UnknownMaturity•4 years

Narrative

Full Description

Project narrative

On September 11, 2013, financial close was reached on a deal in which the Export-Import Bank of China entered into a $300 million USD loan agreement with Essar Energy plc — a Mauritius-based, London Stock Exchange-listed energy and oil and gas company and subsidiary of India's Essar Group — for the Stanlow Refinery Acquisition Refinancing Project. This debt carried a maturity period of four years. The $300 million loan USD up-sized an existing $150 million USD loan facility provided by Axis Bank accrued in September 2012, with the entire $450 million USD loan maturing in 2017. The proceeds of this loan were to be used by the borrower to repay $233 million USD under an existing bridge loan facility used for the acquisition of the Stanlow Refinery, the second largest oil refinery in the United Kingdom with a throughput capacity of 296,000 barrels daily located in Ellesmere Port, North West England, and for general corporate purposes. Essar Energy purchased the refinery from Shell in July 2011.

Staff comments

1. Essar Group is an Indian multinational conglomerate company, founded by Shashi Ruia and Ravi Ruia in 1969. The company, known as Essar Global Fund Limited (EGFL), owns a variety of assets in the core sectors of energy (oil refining, oil and gas exploration and production, power), infrastructure & logistics (ports, projects), metals & mining, technology, and retail (oilfield services, information technology, and food retail). EGFL holds a nearly 100% stake in all its investments. Significant Essar Group companies include Essar Oil UK, Essar Ports, Essar Oil & Gas Exploration & Production, Essar Shipping, Essar Power, and Essar Projects. In 2017, Essar Steel India Ltd. (ESIL) was on the defaulter's list disclosed by the Reserve Bank of India. Essar Oil was acquired by a consortium led by Rosneft, Trafigura, and UCP for $12.9 billion, and Essar Oil was rebranded as Nayara Energy.