Cairn India has been awarded a “CARE AAA” rating by the Credit Analysis and Research Limited (CARE) for its INR 4,000 crore domestic borrowing, which is helping to finance the development of its world class oil fields in Rajasthan.
In October 2009, Cairn India completed financing arrangements for a USD 1.6 billion deal to help fund the Rajasthan project. The overall facility was a combination of both US dollars and Indian rupees accessing both domestic and international markets.
The international borrowing of USD 750 million was provided by a consortium of overseas commercial banks led by Standard Chartered Bank and the International Finance Corporation, a member of the World Bank Group. The domestic borrowing of INR 4,000 crore was underwritten by the State Bank of India, who have syndicated to other banks and financial institutions, including Canara Bank, Bank of India, Oriental Bank of Commerce, Bank of Baroda, HDFC Bank and Infrastructure Development and Finance Corporation.
The Triple A rating applies to the total facilities of up to INR 5,000 crore, of which INR 4,000 crore is already in place as set out above. With these existing financing arrangements, Cairn India is fully funded for the Rajasthan development project and there is no plan to put in place any additional borrowing for the Rajasthan project.
The tied-up financing arrangements of the INR 4,000 crore and an additional long term banking facility of INR 1,000 crore, provide additional flexibility to optimise the financing arrangements, if required.
Indrajit Banerjee, Executive Director and Chief Financial Officer, Cairn India said: “Cairn India is very pleased to have been awarded the Triple A rating by CARE. It is a further endorsement of the world class Rajasthan project, which has the potential to provide long term value to stakeholders across India.”
