Russian bank to provide up to $1 bn credit to Essar Group

The agreement to this effect was signed by Essar co- founder Shashi Ruia and VTB Chairman Andrey Kostin in presence of Prime Minister Narendra Modi and Russian President Vladmir Putin today.

By PTI | Updated: Dec 11, 2014, 07.52 PM IST

NEW DELHI: Russian bank VTB will provide up to $1 billion credit to Essar Group for its corporate and project needs.

The agreement to this effect was signed by Essar co- founder Shashi Ruia and VTB Chairman Andrey Kostin in presence of Prime Minister Narendra Modi and Russian President Vladmir Putin here today.

The MoU "envisages finance arrangement of $one billion to Essar by VTB for general corporate purpose," an official statement said here.

The deal is intended to finance the continued consolidation of certain assets in Essar Group's investment portfolio and the strengthening of their capital structure.

This financing follows the successful $1.2 billion transaction arranged in 1H 2014 by VTB Capital which acted as Financial Adviser and Financier for the company in taking its key assets private, which were listed on the London Stock Exchange, VTB said in a statement.

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Russian President Vladimir Putin and Prime Minister Narendra Modi shake hands during their joint press conference at Hyderabad House in New Delhi on December 11, 2014.