New Delhi: Essar Energy Transition (EET) Fuels has announced on Tuesday that it has secured a funding of USD 350 million. “EET Fuels (the trading name of Essar Oil (UK) Ltd) is pleased to confirm it has successfully attracted new financing facilities demonstrating market confidence in the company’s decarbonisation strategy, market position and strategic importance,” a statement issued by the company said on Tuesday.
“The company has agreed USD 350 million in re-financing through a combination of a new bank financing and upsizing of existing trade credit financing facilities in this quarter. This follows the announcement in October 2024 of USD 650 million in financing facilities including a new receivable facility with ABN AMRO Bank and the extension of the pre-existing HCOB and UMTB facility,” said Essar.
“With plans to become the leading low carbon process refinery, through the delivery of a 95 percent reduction in carbon emissions, and to develop Stanlow into an energy transition hub, including industrial carbon capture, low carbon hydrogen production and Europe’s first hydrogen-fuelled combined heat and power plant, EET Fuels is setting a global benchmark for industrial decarbonisation,” it said.
The funding has two components — USD 150-million facility with African Export-Import Bank (Afreximbank), the Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade, and upsizing of the previously reported USD 300 million trade credit financing facility with an international oil company, to USD 500 million.
“The new facilities ensure EET Fuels’ is well-placed to deliver on its decarbonisation ambitions by strengthening its balance sheet with stable medium term financing, deepening existing relationships with key trading partners while also establishing relationships in new African markets,” said the company.
Satish Vasooja, Chief Financial Officer at EET Fuels, said, “We’re leading the energy transition, and our ambition is to become the world’s first low carbon refinery. This new facility with Afreximbank, further diversifying our sources of finance and establishing new relationships, supports our ongoing transformation and showcases market confidence in our energy transition strategy.”
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