HOEC to raise $125 mn via ECBs from Brussels

Hindustan Oil Exploration Company Ltd (HOEC) has entered into a loan agreement with Eni Coordination Centre (ECC) of Brussels for External Commercial Borrowings (ECBs) worth $125 million to part finance its development activities, including development of PY-1 field.

Earlier, HOEC had entered into a Dollar Facility Agreement (DFA) with a consortium of banks for availing a US dollar denominated term loan, amounting to $100 million to part finance the development of PY-1 field. However, the banks provided only $12.84 million.

Last week, HOEC said the banks were reluctant to disburse the loans due to adverse market conditions and the company was looking for alternate options.