Essar Global says all overseas debt cleared, USD 1.75 bn paid to Indian, foreign banks

Essar Global Fund Ltd, the holding company of Essar Group, Monday said it has repaid all its overseas debt after it paid back the last tranche of Rs 12,000 crore (USD 1.75 billion) to its various Indian and foreign lenders.

This is in addition to Rs 30,000 crore (USD 5 billion) repayment made in August 2017 to various lenders from the proceeds from the sale of Essar Oil to Rosneft of Russia, the company said in a statement.

With this, Essar Global has now repaid about Rs 6,300 crore to ICICI Bank, Axis Bank, and Standard Chartered Bank. This repays entire Rs 31,500 crore of loans availed from these banks during 2008-14.

Over the past two years, Essar Group has repaid more than Rs 1.37 lakh crore (USD 21 billion) of debt (including that of Essar Steel), majority of which are to Indian lenders. "This is more than 80 per cent of the group's debt," the statement said.

Russia's VTB is the only continuing lender to Essar Global.

Giving details of the Rs 1.37 lakh crore debt repayment, the group said in 2017, Essar Global repaid about Rs 86,000 crore of liability, including Rs 72,600 crore to banks, from proceeds of sale of Essar Oil to a consortium led by Rosneft and Trafigura.

Additionally, BPO arm Aegis has been sold for about Rs 6,000 crore and Equinox Business Parks for Rs 2,400 crore. These proceeds have been used to deleverage the group.

"A further Rs 45,000 crore of group debt relating to Essar Steel India is being addressed through the ongoing insolvency and bankruptcy process," it said. "In this regard, lenders have already received an offer from ArcelorMittal offering them cash repayment of Rs 42,000 crore."