Essar Group Arm Secures $400 Mn From UK, European Banks for Energy Transition Plans

• Essar Energy Transition has secured a $400-million financing package from three European and UK banks.

• The funds will improve liquidity, strengthen working capital and support long-term growth and decarbonisation projects.

• The package includes an expanded receivables financing facility and a new funding commitment from Natixis CIB.

Essar Energy Transition (EET), the low-carbon investment arm of the Essar Group, has secured $400 million (around ₹3,806 crore) in financing facilities from three leading European and UK banks to support its growth and energy transition plans, the company said on Wednesday.

According to the company, the funding will strengthen liquidity, improve working capital efficiency and provide greater financial flexibility as it expands its low-carbon energy business.

The financing package combines an expanded receivables financing facility with fresh committed funding from its banking partners.

Financing Package Expanded

The company said the financing package includes an amendment and expansion of its Receivables Purchase Agreement (RPA), increasing the facility from $150 million to $350 million.

The RPA, which was originally signed with ABN AMRO in September 2024, now includes NatWest (RBS Invoice Finance) as a new lending partner. Both NatWest and ABN AMRO have committed $175 million each under the expanded facility.

In addition, Natixis Corporate & Investment Banking (Natixis CIB) has provided $50 million in committed financing, taking the total financing package to $400 million.

Focus on Growth and Energy Transition

Essar Energy Transition said the addition of NatWest marks an important step in expanding its relationships with major UK financial institutions while strengthening its funding base.

Commenting on the development, Chief Financial Officer Satish Vasooja said the increased commitments from existing lenders and the addition of NatWest would provide the company with greater liquidity during volatile market conditions and help optimise its capital structure.

NatWest's Head of Asset-Based Lending Origination, Andrew Barraclough, said the financing reflects confidence in the company's business and its plans to invest in industrial decarbonisation, energy security and long-term economic growth.

The latest financing supports Essar Energy Transition's broader strategy to expand its low-carbon energy business in the UK. Earlier this week, the Essar Group announced plans to invest £4.3 billion in energy transition projects in the country by 2035, which it said would support the UK's decarbonisation efforts and create thousands of skilled jobs, according to Reuters.