Essar seeks $3.59 b loan against Vodafone venture

Essar Group, the Indian partner for Vodafone Group Plc in India's third-largest mobile-phone operator, is seeking a $3.59 billion (more than Rs 14,000 crore) loan against its stake in the venture.

Essar Communications India Ltd hired Standard Chartered Plc, Commerzbank AG, BNP Paribas SA and Citigroup Inc to arrange the loan, which will be payable December 8, 2011, according an e-mailed statement from BNP Paribas.

The loan will be used to lower borrowing costs and to fund investment for companies that are part of the Essar Group, according to the statement. The Essar Group has a 33 per cent stake in the mobile-operator through its subsidiaries.

Newbury, England-based Vodafone, the world's biggest mobile-phone company, bought a controlling stake in the Indian joint venture from Hutchison Telecommunications International Ltd in May.