“The corporate has held talks with a few world banks to evaluate their curiosity for a potential greenback bond,” mentioned one of many individuals, who didn’t want to be recognized.
Nevertheless, the corporate has not but finalised whether or not to proceed with the fundraising, mentioned the individual. A part of the fund will probably be used for growth and the remaining for refinancing the prevailing debt.
An Essar spokesperson mentioned, “We regularly assess numerous alternatives to gas our progress technique. As a matter of coverage, we don’t touch upon particular discussions or plans till they’re finalised.”
EOGEPL is fully owned by Essar Exploration & Manufacturing Ltd, Mauritius. This guardian firm additionally owns different belongings equivalent to oil and fuel operations in Nigeria and a fuel block in Vietnam. These different belongings are nonetheless within the early phases of exploration and are usually not producing earnings but. Different Essar companies, equivalent to energy, ports and metal, have additionally confronted monetary restructuring
The corporate underwent restructuring and below the plan resolved loans availed by the corporate for the event of its Raniganj Coal Mattress Methane (CBM) Block in West Bengal. The loans included $82 million in overseas foreign money debt and Rs 1,000 crore in native foreign money loans from lenders equivalent to Axis Financial institution, Sure Financial institution, Indian Abroad Financial institution, Axis Financial institution Reward Metropolis Department and Indian Infrastructure Finance Ltd. UK.EOGEPL is financially steady for now, but it surely operates below strict circumstances set by its lenders. The Raniganj CBM Block, awarded to Essar in 2002, has since seen the event of 348 CBM manufacturing wells and supporting pipelines. The corporate additionally entered a 15-year CBM sale and buy settlement with GAIL India Ltd. for as much as 2.3 million metric customary cubic metres per day of fuel. It’s conducting early-stage exploration and can be exploring shale fuel within the Raniganj CBM block in West Bengal.
