Essar energy transition secures $400 million funding for low-carbon push

The funding comes amid volatile energy markets and will support the company’s working-capital requirements, capital structure and broader strategy to build a major energy-transition hub in northwest England.

The financing package includes an increase in Essar Energy Transition’s Receivables Purchase Agreement from $150 million to $350 million. NatWest, through RBS Invoice Finance, has entered the facility with a $175-million commitment, while ABN AMRO has renewed and raised its participation to $175 million.

Separately, Natixis CIB has committed an additional $50 million, raising its total financing facility for the company to $150 million. The transactions expand Essar Energy Transition’s access to funding and diversify its banking relationships across the UK and Europe.

“This provides us with enhanced liquidity during volatile market conditions and completes our receivable financing programme that will deliver an optimised and stable capital structure,” said Satish Vasooja, chief financial officer at Essar Energy Transition.

Vasooja said the increased commitments from ABN AMRO and Natixis, along with the addition of NatWest, supported the company’s strategy and demonstrated its business performance as it continued to deliver energy security for the UK.

NatWest said the financing would give Essar Energy Transition greater flexibility to invest in projects supporting industrial decarbonisation, energy security and economic growth.

“The addition of NatWest to this facility reflects both the strength of Essar Energy Transition’s business and the scale of its ambitions,” said Andrew Barraclough, head of ABL origination at NatWest.

Essar Energy Transition aims to become a leading low-carbon fuels producer while supporting the UK’s decarbonisation agenda and creating skilled employment in northwest England.