World Bank Group’s private lending arm IFC has concluded a $250-million financing agreement with Cairn India as its continuing support to development of the country’s domestic oil resources and providing benefits to the local people of Rajasthan.
The loan is part of a $750-million financing package being arranged together with Standard Chartered Bank. In parallel, State Bank of India (SBI) has arranged a local currency loan equivalent to $850 million.
The loans, according to an IFC statement here, are to be used to restructure Cairn’s existing debt and help the company complete its oilfield development and pipeline construction in Western India. Commenting on the financing package, Cairn India CEO Rahul Dhir said: “In today’s markets, financing complex projects like ours can be difficult.
“The IFC has once again demonstrated its unique ability to take a long-term view and meet our needs by providing financing and bringing other partners to the table.”
The IFC has provided Cairn with three rounds of debt and equity financing in the last five years.
“Our partnership with Cairn is helping meet India’s energy needs and demonstrates the positive impact responsible companies can have in their communities,” said IFC Global Head of Oil and Gas, Mining, and Chemicals Somit Varma.
