Cairn Obtains Financing for Rajasthan Development

Cairn Energy PLC on Tuesday publicly signed an agreement for a $1 billion facility with major international banks at a ceremony in New Delhi, India.

The key purpose of this facility, which is a significant inward investment into India, will be to fund Cairn’s share of the development costs of the Rajasthan oil and gas fields--principally the Mangala field in the north of the block.

The refinancing of the group’s debt facilities follows the group’s significant discoveries in Rajasthan, India. Cairn has reached agreements with the following 14 banks: Royal Bank of Scotland (RBS), the International Finance Corporation (IFC), ABN AMRO Bank N.V., Barclays Bank PLC, Citigroup, Bank of Scotland Corporate, HSBC Bank plc, ICICI Bank UK Limited, Lloyds TSB Scotland PLC, Mizuho Corporate Bank, Ltd., National Australia Bank Limited (London Branch), Standard Chartered Bank, Sumitomo Mitsui Finance Dublin Limited, and Societe Generale Corporate and Investment Banking.

Cairn has received final Government of India approval for the first four field development plans (FDPs) for the Mangala, Aishwariya, Saraswati, and Raageshwari fields in Rajasthan.

Attending the ceremony were key officials and politicians from the Indian and Rajasthan governments, along with representatives of the international banks involved in the lending and directors and management from Cairn Energy.

“This project is aligned with the Government of India’s objective of securing future energy supplies and we are delighted that the international banks have supported this significant inward investment into India,” said Sir Bill Gammell, Cairn’s chief executive.