Advertisement
Goodbye job applications, hello dream career
Seize control of your career and design the future you deserve with LW career
GET STARTED

Fresh funding for Cairn Energy

HERBERT SMITH’S energy finance team advised the Royal Bank of Scotland plc (RBS), as documentation bank and facility coordinator, and International Finance Corporation (IFC) on a syndicated…

user iconLawyers Weekly • 08 August 2006 • Big Law
expand image

HERBERT SMITH’S energy finance team advised the Royal Bank of Scotland plc (RBS), as documentation bank and facility coordinator, and International Finance Corporation (IFC) on a syndicated hybrid revolving credit facility for Cairn Energy PLC.

You’re out of free articles for this month
Along with several other international banks, RBS and IFC are providing Cairn Energy with a facility of up to $1 billion comprising an $850 million development tranche, and a $150 million corporate tranche, the largest facility of this type to date in the UK market.

The funds will primarily be used to finance Cairn Energy’s operations in oil field development and production, particularly in the Rajasthan block in India, which includes the Mangala Field, the largest oil discovery in India for 22 years. The funds will also be used to refinance existing debt.

The Herbert Smith team was led by partner Adrian Cheng and head of finance Jason Fox, assisted by associates Wanda Tomaszek and Thomas Bethel.

“This is the largest reserve based lending for at least a decade and the fact that the facility is supported exclusively by a South Asian asset base makes it unique,” Cheng said.

Herbert Smith advised the lenders on English law, while law firm Stibbe, with which Herbert Smith have an alliance, advised on Dutch law. Herbert Smith also worked with local counsel Freehills (Australia), Maclay Murray & Spens (Scotland) and J Sagar Associates (India).

McGrigors advised Cairn Energy.

Tags
You need to be a member to post comments. Become a member for free today!