Essar Oil to sign $1 billion financing co-operation deal with CDB
India's Essar Oil Ltd is on the verge of signing a $1 billion financing co-operation deal with China Development Bank Corp (CDBC) and PetroChina International, people with direct knowledge of the matter said.
Sources said that the $1 billion financing agreement could be signed between the two sides on Tuesday during China's Prime Minister Li Keqiang's first official visit to Mumbai.
Controlled by billionaires Shashi Ruia and Ravi Ruia, Essar Oil has for sometime been replacing its rupee debt with overseas loans, which cost lower. The company has so far refinanced nearly $481 million.
On Monday, the Indian firm said, "As part of our initiative to dollarize our debt, we have been in discussion with several international banks, including Chinese banks. CDB is part of that conversation."
But, it declined to confirm the reported agreement with China's state-run bank.
On May 10, Essar Oil CEO L. K. Gupta had said that the company expected to refinance another $1.8 billion within the next 3-6 months.
Sources also said that Indian and Chinese enterprises are set to sign deals worth more than $1.40 billion (Rs 7,755cr) during Chinese Premier's ongoing visit to India.