Essar Oil UK has secured $150 million financing from HCOB and UMTB, strengthening its market position in the oil and gas industry – EQ
In Short : Essar Oil UK has successfully secured a $150 million financing deal with HCOB and UMTB, bolstering its position in the market. This financial support will enable Essar Oil UK to strengthen its operations, invest in infrastructure, and further its presence in the energy sector. This strategic move enhances the company’s capabilities and contributes to its sustainable growth in the competitive market.
In Detail : It also enables EOUK to strengthen major customer relationships and increase sales volumes through the ability to offer its customers greater financing flexibility.
Essar Oil UK (EOUK) has confirmed that it has successfully completed the financing of a $150 million receivables portfolio with Hamburg Commercial Bank AG (“HCOB”) and Mizrahi Tefahot Bank Ltd (‘UMTB’). This new facility will be used for working capital and general corporate purposes.
The successful closure of this financing highlights the banking community’s confidence in EOUK, building on its financial performance and market position in the UK.
This financing comes at a competitive market rate for a facility of this size and nature, thereby enabling EOUK to optimise its longer term financing strategy.
Deepak Maheswari, Chief Executive Officer at Essar Oil UK commented, “This is a positive step forward. EOUK is building for the future, with ambitions to become the UK’s first low carbon refinery. Serving our customers’ needs and securing competitive financing is critical to this overall objective.”
Satish Vasooja, Chief Financial Officer at Essar Oil UK, commented, “We are pleased to complete this important financing and build any relationship with UMTB and HCOB Banks. This financing helps us deliver a part of our capital structure on market standard terms. It is a sign of the confidence the banking community has in EOUK and our long-term financial performance, while it will also support our strategy to provide better terms to customers and to increase overall sales volume.”
