Calyon has closed a US$100mn prepayment facility for Essar Steel, a major steel manufacturer based in India.
The facility has been structured as a prepayment transaction with the in-house marketing and trading arm of Essar (Essar Steel Trading), based in Dubai, acting as the borrower.
Trade advances between Essar Steel Trading and Essar carry a maximum tenor of one year, with repayment coming from the assignment of proceeds under steel products offtake contracts signed between Essar Steel Trading and a panel of pre-approved offtakers.
Payments are being made via letters of credit into a dedicated collection account at Calyon London.
During general syndication, Calyon was joined by three co-arrangers: HSH Nordbank, LH Asian Trade Finance Fund and Lloyds TSB.
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