The company secured the debt after it completed the exiting process of the corporate debt restructuring (CDR) loan facility, which was set up to cover the construction costs at the refinery.
Essar Oil managing director and chief executive officer Lalit Gupta said that the CDR exit is a step forward for the company.
"Complete stabilising of our expanded capacity pave the way for us to move forward positively to maximize value for all our stakeholders," Gupta added.
"Capacity expansion and high complexity has already improved our profitability."
Essar Oil chief financial officer Suresh Jain said that exiting the loan facility will now help the company with operational and financial flexibility.
"We have begun the process of swapping our costly rupee debt with cheaper dollar loans that will lower our interest cost significantly, improve our cash flow, and strengthen the balance sheet," Jain added.
Essar’s Vadinar Refinery, which has a capacity of 220,000 barrels per day (bpd) and complexity of 6.1 in May 2008, now has a capacity of 405,000bpd and complexity of 11.8.
