October 17, 2016 / 4:51 AM / 9 months ago

BUZZ-Essar Group lenders gain after deal with Rosneft-led consortium

1 Min Read

(Updates)

** Three of the biggest lenders to Essar Group gain; shares of ICICI Bank, Axis Bank and State Bank of India rise between 1.5 pct and 5.5 pct

** Debt-laden Essar Group confirmed it has agreed to sell an oil unit to a consortium led by Russia's Rosneft

** Essar plans to use proceeds from the sale to offset some 50 pct of the debt on its group companies

** Essar Group CEO says parent company's debt would be cut by about $5 bln and a further $5 bln would go towards trimming debt at the operating company level

** "...such a large deleveraging would be positive for Essar Group lenders," Nomura said in a note ahead of the deal announcement

** Exposure to Essar Group expressed as a pct of respective bank's loan book is highest for ICICI Bank, Axis Bank, PNB and SBI - Nomura (RM: aastha.agnihotri.thomsonreuters.com@reuters.net)

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