Essar Energy Transition has announced the successful execution of $400 million in combined financing across two distinct facilities with three major banking institutions, strengthening its balance sheet, enhancing working capital efficiency, and supporting its long-term growth and decarbonisation strategy.
The financing package includes the amendment and restatement of the company’s Receivables Purchase Agreement (RPA), which expands total commitments from $150 million to $350 million. Originally established with ABN AMRO in September 2024, the expanded $350 million facility introduces NatWest (RBS Invoice Finance) with a $175 million commitment. The inclusion of NatWest marks a major strategic expansion of Essar’s relationship with leading UK high-street financial institutions.
Alongside NatWest, long-standing banking partner ABN AMRO has increased its commitment to match, bringing its total participation to $175 million.
Completing the $400 million financing suite, Essar Energy Transition has also secured an additional $50 million in committed financing from Natixis CIB, supplementing its existing $100 million facility and boosting overall liquidity availability across its network of European banking partners.
Satish Vasooja, Chief Financial Officer at Essar Energy Transition, stated that the increased commitment from ABN AMRO and Natixis, alongside the addition of NatWest, provides enhanced liquidity during volatile market conditions while establishing an optimised capital structure to support UK energy security.
Tarun Naruka, Head of Corporate and Structured Finance at Essar Energy Transition Fuels, added that the successful transaction demonstrates disciplined capital management and diversifies funding sources. Andrew Barraclough, Head of ABL Origination at NatWest, noted that the financing offers greater flexibility for Essar to invest in industrial decarbonisation, energy security, and long-term value creation.
