IFC’s $250 Million Loan Supports Development of India’s Domestic Energy Supplies

In Washington, D.C.: 
Josef Skoldeberg 
Phone:  (202) 4736978 
E-mail:  jskoldeberg@ifc.org 

In New Delhi: 
Minakshi Seth 
Phone:  +91 11 4111 1000 
E-mail:  mseth@ifc.org  




Washington, D.C./New Delhi, October 14, 2009—IFC, a member of the World Bank 
Group, has concluded a financing agreement with Cairn India Group to continue 
supporting the company in developing India’s domestic oil resources and 
providing benefits to local people in the Indian state of Rajasthan. 

IFC’s $250 million loan to Cairn is part of a $750 million financing package 
being arranged together with Standard Chartered Bank. In parallel, the State 
Bank of India has arranged a local currency loan of $850 million equivalent. 
The loans will be used to restructure Cairn’s existing debt and help the 
company complete its oil field development and pipeline construction in Western 
India. 

“In today’s markets, financing complex projects like ours can be difficult,” 
said Rahul Dhir, Cairn’s CEO.  “IFC has once again demonstrated its unique 
ability to take a long-term view and meet our needs by providing financing and 
bringing other partners to the table. We look forward to IFC’s continued 
financial support and invaluable advice on environmental and social matters.” 

IFC has provided Cairn with three rounds of debt and equity financing over the 
last five years.  IFC and Cairn also have partnered to create an Enterprise 
Center in Rajasthan that provides skills and business training to local 
communities so people can increase their incomes. Last year, the center 
provided skills training to over 2,200 men and women and helped more than 750 
local farmers increase their dairy revenue. 

“IFC is committed to helping companies in India gain access to the financing 
and advice needed to achieve long-term success and continue contributing to 
India’s economic growth,” said Somit Varma, IFC Global Head of Oil and Gas, 
Mining, and Chemicals. “Our partnership with Cairn is helping meet India’s 
energy needs and demonstrates the positive impact responsible companies can 
have in their communities.” 

About IFC 
IFC, a member of the World Bank Group, creates opportunity for people to escape 
poverty and improve their lives. We foster sustainable economic growth in 
developing countries by supporting private sector development, mobilizing 
private capital, and providing advisory and risk mitigation services to 
businesses and governments. Our new investments totaled $14.5 billion in fiscal 
2009, helping play a prominent role in addressing the financial crisis. For 
more information, visit www.ifc.org. 
About Cairn 
Cairn India is the fourth-largest oil and gas exploration and production 
company in India where it holds material exploration and production positions 
in 13 blocks. The company focuses on creating shareholder value by developing 
its world-class resource base in Rajasthan and seeks to continue with its track 
record of exploration success. In January 2007, Cairn successfully concluded 
the flotation of its Indian business with the commencement of trading of Cairn 
India Limited on the Bombay Stock Exchange and the National Stock Exchange of 
India. Cairn Energy PLC currently holds a 65 percent shareholding in Cairn 
India Limited. For more information, visit www.cairnindia.com.