Washington, D.C./New Delhi, October 14, 2009
—IFC, a member of the World Bank Group, has concluded a financing agreement with Cairn India Group to continue supporting the company in developing India’s domestic oil resources and providing benefits to local people in the Indian state of Rajasthan.
IFC’s $250 million loan to Cairn is part of a $750 million financing package being arranged together with Standard Chartered Bank. In parallel, the State Bank of India has arranged a local currency loan of $850 million equivalent. The loans will be used to restructure Cairn’s existing debt and help the company complete its oil field development and pipeline construction in Western India.
“In today’s markets, financing complex projects like ours can be difficult,” said Rahul Dhir, Cairn’s CEO. “IFC has once again demonstrated its unique ability to take a long-term view and meet our needs by providing financing and bringing other partners to the table. We look forward to IFC’s continued financial support and invaluable advice on environmental and social matters.”
IFC has provided Cairn with three rounds of debt and equity financing over the last five years. IFC and Cairn also have partnered to create an Enterprise Center in Rajasthan that provides skills and business training to local communities so people can increase their incomes. Last year, the center provided skills training to over 2,200 men and women and helped more than 750 local farmers increase their dairy revenue.
“IFC is committed to helping companies in India gain access to the financing and advice needed to achieve long-term success and continue contributing to India’s economic growth,” said Somit Varma, IFC Global Head of Oil and Gas, Mining, and Chemicals. “Our partnership with Cairn is helping meet India’s energy needs and demonstrates the positive impact responsible companies can have in their communities.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping play a prominent role in addressing the financial crisis. For more information, visit
www.ifc.org
.
About Cairn
Cairn India is the fourth-largest oil and gas exploration and production company in India where it holds material exploration and production positions in 13 blocks. The company focuses on creating shareholder value by developing its world-class resource base in Rajasthan and seeks to continue with its track record of exploration success. In January 2007, Cairn successfully concluded the flotation of its Indian business with the commencement of trading of Cairn India Limited on the Bombay Stock Exchange and the National Stock Exchange of India. Cairn Energy PLC currently holds a 65 percent shareholding in Cairn India Limited. For more information, visit
www.cairnindia.com
.
