LONDON (Reuters) - Russian-backed Indian refiner Nayara Energy has completed a long-term pre-payment deal with BP and global commodities trader Trafigura for $750 million (£573 million), Nayara's chief executive said on Wednesday.
The deal, backed by a consortium of international banks, will see the two firms repaid with future gasoline and gasoil over the next four years.
Pre-payments are one the financing mechanisms frequently used in the oil industry.
The total is half the amount originally targeted but is key for asserting the firm's independence after being previously owned by the debt-laden Essar Group which was wholly dependent on local lenders.
"Nayara Energy is continually looking for innovative opportunities to develop a robust financing framework to strengthen its balance sheet," CEO B. Anand said in a statement.
"This is truly a benchmark transaction and yet another milestone in our journey towards achieving financial excellence."
Trafigura and BP closed two similar deals over shorter periods worth $1.45 billion last year.
Nayara, formerly Essar Oil, was taken over by a consortium led by Russian oil major Rosneft in 2017. Rosneft owns 49.13 percent of Nayara, while Russian fund UCP and Geneva-based Trafigura together own a similar share.
The consortium acquired a 400,000 barrel-per-day refinery in Vadinar as well as a port, power plant and 3,500 fuel stations for nearly $13 billion.
Earlier this year, the refiner said it would invest $850 million to build a new refinery and petrochemical plant.
(Reporting by Julia Payne; editing by Jason Neely)