OREANDA-NEWS. May 16, 2012. Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that it has refinanced a USD 450 million bridge loan which was due December 2012 with a new USD 300 million 3 year secured loan facility and USD 150 million of internal cash resources. Separately, Essar Energy has also signed a USD 250 million 3.5 year subordinated unsecured loan facility with Essar Global Limited for general corporate purposes.

The new USD 300 million 3 year secured loan facility is being provided by a consortium of banks who were the lenders under the original USD 450 million bridge loan facility.

The USD 250 million subordinated unsecured loan facility is being provided by Essar Global Limited on normal commercial terms and can be utilised for general corporate purposes. The facility is currently undrawn, but can be drawn in full or in part at any time during the 3.5 year life of the facility.

Commenting on the refinancing, Naresh Nayyar, CEO of Essar Energy said: “The completion of these financings provides Essar Energy with additional debt facilities including an extended maturity profile and demonstrates continued strong support from our banking group and major shareholder. The successful commissioning of the Vadinar refinery and near completion of three of our major power plant projects marks an inflexion point in our capital expenditure cycle and will see a significant improvement in the cash flows within our businesses.”