Financial Briefs

India and overseas

Powergrid approves Rs 3.28 billion investment for transmission projects (India)

In order to ramp up two transmission projects, the board of Powergrid Corporation of India Limited (Powergrid) approved an investment of Rs 3.28 billion. These projects are the Western Region System Strengthening Scheme-XIV in Southern Region (Rs 1.21 billion), with a commissioning schedule of 30 months, and 400 kV bays extension at the 400 kV Vemagiri substation (Rs 2.07 billion), with a commissioning schedule of 30 months.

Hero Future Energies raises Rs 3 billion through the issue of climate bonds

Hero Future Energies has raised Rs 3 billion through the issue of climate bonds. The proceeds from the bonds would be utilised for setting up 2.5 GW of wind power capacity in the coming years. The bonds have been validated by the Climate Bonds Initiative, an international organisation that issues certification for conformance with relevant standards for climate bonds. Climate bonds are green bonds that require mandatory independent third-party verification of the additional gains to investors from the climate benefit of the investments.

NTPC raises $500 million through dollar-denominated bonds

NTPC Limited has raised $500 million through the sale of offshore dollar-denominated bonds. The 10-year bonds were priced at 255 basis points (bps) above the benchmark 10-year US Treasury yield, which was 20 bps lower than the initial guidance price of 275 bps. The bonds carry a coupon rate of 4.25 per cent. The bond sale is the first overseas corporate issuance for calendar year 2016.

SE Forge Limited exits corporate debt restructuring plan

SE Forge Limited (SEFL), a subsidiary of the Suzlon Group, has exited the corporate debt restructuring plan. This follows the company’s improved performance in terms of sales revenue in the first nine months of 2015-16. SEFL, set up in 2006, is engaged in the manufacture of castings and forgings for diverse industries like wind energy, power, transmission, oil and gas, aerospace, and defence.

Tata Power terminates SPA with IEPL

Tata Power Company Limited has terminated the share purchase agreement (SPA) with Ideal Energy Projects Limited (IEPL) for the acquisition of 100 per cent stake in the latter’s 270 MW coal-based power project (extendable to 540 MW) in Maharashtra. Tata Power has cited the non-fulfilment of precedent conditions for terminating the agreement.

ISA likely to raise Rs 67 trillion from multilateral institutions and private sector

The International Solar Alliance (ISA) is likely to raise around Rs 67 trillion ($1 trillion) from multilateral institutions (such as the Asian Development Bank, the World Bank and KfW) and private sector funding sources. The ISA comprises 121 countries, lying between the Tropic of Cancer and the Tropic of Capricorn. These countries would make joint efforts through innovative policies, projects, programmes, capacity building measures and financial instruments for the development of renewable energy. The ISA will be headquartered in Gurgaon, Haryana.

IWISL acquires 100 cent stake in Vinirrmaa

Inox Wind Infrastructure Service Limited (IWISL), a subsidiary of Inox Wind, has acquired 100 per cent stake in Vinirrmaa Energy Generation Private Limited. Following the acquisition, Vinirrmaa has become a step-down subsidiary of Inox wind. The value of the deal has not been disclosed. Inox Wind is an integrated wind energy player with manufacturing units in Himachal Pradesh and Gujarat.

CEPS receives Euro 1 million EC grant for grid improvement (Czech Republic)

The Czech Republic’s transmission system operator, CEPS AS, has received a Euro 1 million grant from the European Commission (EC) for the construction and development of the country’s power grid. The grant will be used to carry out a study for the preparation of project documentation for the construction of the Vernérov-Vítkov line and the Vítkov-Preštice line. The construction of these lines will increase the reliability of supply in West Bohemia.

IDB extends $500 million for Costa Rica’s energy sector (Costa Rica)

The Inter-American Development Bank (IDB) has signed an agreement to extend $500 million to Costa Rica-based energy firm Instituto Costarricense de Electricidad for implementing renewable energy, and electricity transmission and distribution projects in the country. Of the $500 million loan, $200 million will be used for the construction of the Pailas II and Borinquen I geothermal projects, upgradation of the Miravalles III plant, strengthening of transmission lines in Guanacaste and renewal of the country’s power grid. The transmission component involves the strengthening of the existing 138 kV Cañas-Filadelfia-Guayabal transmission line and construction of the Mogote-SIEPAC double-circuit transmission line by branching the Cañas-Ticuantepe transmission line in Mogote, to overcome constraints in the North Ring’s transmission capacity. The second loan, worth $300 million, will finance the construction of the 55 MW Borinquen II plant, and will be used for the upgradation of the Arenal hydroelectric plant, as well as for the implementation of works along the national grid. The agreement needs approval  of Costa Rica’s legislative assembly before the first loan can be paid out in 2017.

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