By Ganesh Nagarajan
Cairn Energy today said its Indian arm has completed raising USD 1.6 billion for funding its project in Rajasthan, India. The proceeds from this facility would be used to repay the existing facility of USD 850 million and to continue funding its ongoing projects in Rajasthan, the company said.
Cairn India Chief Executive Rahul Dhir said: “We are delighted at the confidence shown by leading financial institutions, both in India as well as overseas in our Rajasthan project and our business. The financing has been completed by accessing two diverse markets on competitive terms in these current challenging times.”
The financing has been arranged through a combination of US dollars and Indian rupee borrowing by accessing both domestic and international markets.
“This is in line with our strategy of funding development expenditure through debt and realigning the company’s capital structure to provide financial flexibility for the future,” he said.
Cairn is an oil and gas exploration based company in Edinburgh. Cairn has been listed on the London Stock Exchange and in Bombay Stock Exchange. Its current focus is developing significant production in Rajasthan where it has established a material exploration position.
The company on August 29 started production of crude oil from Mangala Field in Rajasthan and delivered its first volume to its client on October 8.
Cairn Energy holds 62.39 per cent stake in its India arm. Cairn India has interests in 13 blocks in India and Sri Lanka.
Cairn Energy share price at London Stock Exchange was 2,710, trading up 67 points (not realtime).