The former Essar Oil, backed by Rosneft, plans to sell up to Rs. 2,500 crores in bonds to pay off certain pricey loans contracted by the Ruia family.

It contacted Standard Chartered, Axis Bank, ICICI Bank, and mutual funds like Birla, ICICI Prudential, and NIPPON.

There are discussions on raising Rs 1,500-2,500 crore, according to one of the cited sources. The funds will be used to refinance some of its older, more costly debt due later this year, sources say.

Due to the favorable credit situation, the proposed bonds will likely have a three- or five-year term.

The 9.5 percent coupon bonds were sold three years ago and are due in August. Dealers say the new bonds' coupon may be reduced by 100-150 basis points

It was not possible to reach Nayara for comment. Nayara Energy, owned by Rosneft, Trafigura, and UCP Investment Group, runs a 20 million tonne per year refinery in Vadinar, Gujarat. It's building a petrochemical plant near its refinery and requires more loans. The company now runs 6000 fuel retail shops nationwide and expects to expand to 7,600 by the end of 2024.

Last year, the company processed 60% ultra-heavy, 30% heavy, and the balance of light crude.

On April 18, Economic Times reported that Reliance Industries Limited (RIL NSE -1.93 percent) promoter group firm Sikka Ports and Terminals Ltd (SPTL) is raising Rs 4,000 crore from Axis Bank, HDFC Bank, and ICICI Bank. Those are likely 6.75 percent five-year notes.