BL reported that Essar Shipping Ports & Logistics Ltd pulled off a series of financial closures amounting to about INR 4,000 crore with domestic and foreign banks in the last two months to fund its various expansion plans.

A few days ago, Essar Shipping Ports & Logistics Ltd wrapped up financial closure of INR 605 crore for its INR 865 crore integrated bulk terminal project at Salaya in Gujarat.

Sources indicated that a host of Indian banks such as Punjab National Bank, Corporation Bank, Union Bank and State Bank of Hyderabad, was involved in the Salaya terminal financial closure.

Confirming the Salaya project financial closure, Mr V Ashok EXPLL Director said that the project is now expected to go on stream by April 2011, with some of its major clients, including group companies such as Essar Power, Essar Oil and Vadinar Power Company. He told the Business Line that “The project already has committed revenue of INR 240 crore.”

This is fourth in the series of financial closures by the company in the last two months or so.

In August, the company sealed the financial closure of USD 155 million for purchase of six dry bulk carriers at a total cost of USD 218 million, which was quickly followed by the financial closure for its INR 773 crore bulk terminal project at Hazira.

Weeks later, it clinched the financial closure for its semi-submersible rig, Essar Wildcat for USD 240 million with a consortium of offshore as well as Indian banks participating in the deal. As part of the Wildcat deal, the company was given a four year facility at competitive terms.

It is in advanced stages of wrapping up financial closure for its INR 930 crore expansion of its Vardinal oil terminal in Gujarat from 10.5 million tonnes to 16 million tonnes.

(Sourced from Business Line)