Essar Bulk Terminal Ltd

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Essar Bulk Terminal Ltd was the SPV of Essar Ports & Terminals Ltd, a subsdiary of Essar Group, to build and operate an all-weather deep-draft port at Hazira in India capable of handling up to 105,000 dwt bulk carriers to import iron ore, pellets, coal, limestone, etc. and export finished steel products. Construction started in Jan 2009 and commissioning in Jul 2009. Essar Ports & Terminals Ltd is the sponsor and Essar Bulk Terminal Ltd is the borrower. Essar Construction Ltd is the EPC contractor. The cost of first phase of the project (30 MTPA Dry Bulk / General Cargo)was estimated to be Rs13.5 billion (US$279 million) with a debt equity ratio of 74/26, according to the project sponsor. Other sources suchas as deallogic indicate a proejct cost of US$160 million. The project reached financial closure on 8 Jun 2009 with a debt/Equity ratio of 66/34. Financing comprises a Rs5.12bn 11-year term loan and Rs2.625bn equity. Axis Bank is the lead arranger. The cost of second phase of the project (20 MTPA General Cargo Terminal expansion) was estimated to be INR8.5 billion (US$186 million) and financial closure was reached in 2010. The second phase expec to be operation by 2012.