Herbert Smith has advised Standard Chartered Bank and IFC on their provision of a $750 million borrowing base facility to Cairn Energy Hydrocarbons Limited.
The facility is the first major reserve-based lending facility to be underwritten by a single bank rather than financed on a club basis since the start of the credit crunch. It follows the clubbed $2 billion Tullow Oil reserve based lending transaction in March on which Herbert Smith also acted as lenders' counsel. A reserve-based lending facility is a loan secured against proven oil and gas reserves.
The new facility refinances Cairn's previous borrowing base facility and will be used to fund the ongoing development of Cairn's oil fields and pipeline in Rajasthan.
It is Herbert Smith's first mandate for Standard Chartered as documentation and structuring bank on a borrowing base facility.
Adrian Cheng led the Herbert Smith team, assisted by associates Simon Nicholls and Rohan Campbell, and trainees Al Trent, Eimear Murphy and Matthew Warren.
Adrian commented:
"It was a pleasure working with Standard Chartered Bank and IFC on this deal. This facility for Cairn and the Tullow financing demonstrate the banks' continuing appetite for reserve-based lending in the post-credit crunch environment."
Maclay Murray & Spens advised Standard Chartered on Scottish law, while Ogier advised on Jersey law and JSA provided Indian law advice.
McGrigors advised Cairn.
Notes to editors
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