Essar Group arm secures ₹3,806 crore through financing facilities from top European, UK banks

Essar Energy Transition, a low carbon investment arm of Essar Group, has secured $400 million ( ₹3,806 crore) in financing facilities from three leading European and UK banks, the company announced on Wednesday.

According to the official press release, the funding is aimed at strengthening the company's liquidity, improving working capital efficiency and supporting its long-term growth and decarbonisation plans.

“Essar Energy Transition today announces the successful execution of $400 million in combined financing across two distinct facilities with three major banking institutions,” the announcement read.

Who is financing Essar Energy Transition?

The financing package includes an amendment and restatement of the company’s Receivables Purchase Agreement (RPA), increasing total commitments from $150 million to $350 million.

The RPA was originally set up with ABN AMRO in September 2024. Under the new $350 million facility, NatWest (RBS Invoice Finance) has joined with a $175 million commitment, while long-standing banking partner ABN AMRO has increased its commitment to $175 million.

In addition, Natixis CIB has provided an additional $50 million in committed financing, taking the total financing package to $400 million.

“The accession of NatWest represents a significant strategic milestone for Essar Energy Transition, marking a major expansion of its relationship with leading UK high-street financial institutions,” the company said.

Deals to enhance liquidity availability

Together these deals enhance liquidity availability from a network of major European banking partners, the company said.

Commenting on the development, Satish Vasooja, Chief Financial Officer at Essar Energy Transition said: “Increased commitment from our existing lending banks, ABN AMRO and Natixis, and the addition of a UK high street bank, NatWest, supports Essar Energy Transition Fuels strategy and demonstrates the delivery of business performance. This provides us with enhanced liquidity during the volatile market conditions and completes our receivable financing programme that will deliver an optimised and stable capital structure to Essar Energy Transition Fuels as we continue to deliver essential energy security for the UK.”

Andrew Barraclough, Head of ABL Origination at NatWest said: "The addition of NatWest to this facility reflects both the strength of Essar Energy Transition’s business and the scale of its ambitions. As the company continues to invest in projects that support industrial decarbonisation, energy security and economic growth, this financing provides greater flexibility to deliver on those objectives and create long-term value."

Essar Group plans $5.8 bn energy transition investment in UK

In another development, Essar Group announced on Monday that it plans to invest 4.3 billion pounds ($5.79 billion) to build low-carbon energy transition projects in the UK by 2035, Reuters reported.

The 4.3-billion-pound investment pipeline will support the UK's energy transition, "generating massive long-term economic value, and creating thousands of highly skilled jobs," said Prashant Ruia, Chairman of EETF.