Financial Briefs

India and overseas

Powergrid approves Rs 25.1 billion investment across various transmission projects (India)

The board of Power Grid Corporation of India Limited (Powergrid) has approved investments totalling Rs 25.1 billion across various transmission projects. It has approved investments of Rs 14.55 billion for the Southern Region System Strengthening Scheme XXIV, with commissioning scheduled within 30 months; Rs 1.62 billion to provide connectivity through an interstate transmission system to  Units 3 and 4 of the Kudankulam atomic power project, with commissioning scheduled within 28 months; Rs 0.57 billion for 400 kV bays under the Northern Region System Strengthening Scheme XXIX, with commissioning scheduled within 18 months; Rs 3.05 billion for a transmission system for a 750 MW ultra mega solar park at Rewa in Madhya Pradesh, scheduled for commissioning within 14 months; Rs 1.87 billion for a transmission system associated with the Darlipalli thermal power station with commissioning scheduled within 29 months; Rs 2.44 billion for the transmission system strengthening associated with the Mundra ultra mega power

project (UMPP) (Part A), with commissioning scheduled within 30 months; and Rs 0.99 billion for the transmission system for the ultra mega solar park – Part B (Phase II) at Anantapur in Andhra, with commissioning scheduled within 16 months.

IREDA issues tax-free bonds aggregating Rs 10 billion

Indian Renewable Energy Development Agency’s (IREDA) tax-free bonds aggregating Rs 10 billion were opened for subscription on January 8, 2016. The issue entails an oversubscription option of up to Rs 7.16 billion. The bonds carry coupon rates ranging from 7.28 per cent to 7.74 per cent.

KPTL acquires 100 per cent stake in ATL

Kalpataru Power Transmission Limited (KPTL) has acquired 100 per cent equity stake in Alipurduar Transmission Limited (ATL). ATL was incorporated in April 2015 by REC Transmission Projects Company Limited as a special purpose vehicle (SPV) for setting up transmission systems to strengthen power transfer from upcoming hydroelectric plants in Bhutan.

OGPCL divests stake in Pallavi Power and Mines to 38.87 per cent

Orient Green Power Company Limited (OGPCL) has divested its stake in Pallavi Power and Mines, reducing it from 51 per cent to 38.87 per cent. Pallavi Power, an SPV formed for the development of small-hydro power projects in Odisha, is a joint venture company between Shalivahana Green Energy Limited (SGEL) and OGPCL. The offloaded stake has been acquired by SGEL.

PCTL to acquire SPX Cooling Technologies’ Rs 3.2 billion dry cooling business

Paharpur Cooling Towers Limited (PCTL) has entered into a definitive agreement with SPX Cooling Technologies to acquire the latter’s dry cooling business which is valued at around

Rs 3.2 billion. As part of the deal, PCTL will also acquire SPX’s 45 per cent stake in Shanghai Electric, China. The deal is expected to be finalised in the first half of 2016. SPX’s dry cooling business is headquartered in Brussels and the company has manufacturing facilities in China and the US.

TPL receives shareholders’ approval for raising debt

Torrent Power Limited (TPL) has received shareholders’ approval to raise debt, with the option for lenders to convert it into equity subject to certain conditions. As per the resolution passed by the shareholders, this would extend to loans, debentures or other financial assistance categorised as loans, up to an amount that would be approved by the shareholders.

Suzlon receives Rs 23 billion additional working capital sanctions

The Suzlon Group has received additional working capital sanctions of Rs 23 billion. This is over and above the existing working capital facilities of Rs 43 billion. The company will utilise the additional funds for meeting its order backlog and implementing the projects in the pipeline. They will also be deployed for undertaking new projects in the Indian and international markets.

Saudi’s SEC signs $1.4 billion loan agreement with international banks (Saudi Arabia)

Saudi Arabia’s state-owned power utility Saudi Electricity Company (SEC) has signed a loan agreement worth $1.4 billion with seven international banks on January 6, 2016. The loan facility is provided for a period of three years by Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank Limited, Sumitomo Mitsui Banking Corporation, HSBC, JP Morgan, Credit Agricole and Deutsche Bank. This is in addition to the successful closing of the SAR-denominated tranche with local banks National Commercial Bank and the Samba Financial Group on December 16, 2015, which amounted to $666 million and has a tenor of three years. Both the agreements bring the company’s revolving facilities to a value of $2.06 billion.

Serbia’s EMS acquires 10 per cent stake in CGES AD (Serbia)

Serbia’s state-owned electricity grid operator Elektromreze Srbije (EMS) has acquired a 10 per cent stake in Montenegro’s Crnogorski Elektroprenosni

Sistem [CGES] AD for Euro 13.84 million. The purchase will place EMS on the board of CGES. The deal is significant as the Serbian transmission company begins to build the trans-Balkan corridor, which will extend along Montenegro and continue via a submarine cable to Italy.

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