Financial Briefs: India and overseas

India and overseas

Powergrid accords investment approval for eight transmission projects (India)

Powergrid’s board has accorded investment approval for the implementation of eight transmission projects. The approved projects are the Rs 8.44 billion Common Transmission System for Phase II Generation Projects in Odisha (commissioning schedule of 36 months); the Rs 8.1 billion Transmission System for Ultra Mega Solar Power Park Phase I at Tumkur in Karnataka (32 months); the Rs 7.9 billion Associated Transmission System for the Nabinagar II Thermal Power Station (38 months); the Rs 4.54 billion Eastern Region Strengthening Scheme XV (24 months); the Rs 2.87 billion Substation Extensions for Transmission System Associated with the Vindhyachal V Project of NTPC (Part B) (May 2017); the Rs 477 million project for works associated with Part A of Transmission Systems for the Gadarwara Super Thermal Power Station of NTPC (June 2018); the Rs 465.7 million project for works associated with the Western Region Strengthening Scheme XV (January 2018), and the Rs 409.1 million Transmission System for the Ultra Mega Solar Park at Anantpur in Andhra Pradesh (Part-C) (19 months).

Suzlon redeems FCCBs worth Rs 1.92 billion

The Suzlon Group has fully redeemed foreign currency convertible bonds (FCCBs) worth Rs 1.92 billion ($28.8 million) along with the applicable redemption premium of 8.7 per cent through a cash payout from internal accruals. Following this, most of the company’s remaining debt has a back-ended maturity profile. The group had issued a five-year FCCB series in April 2011 for $175 million with a 5 per cent coupon rate and maturity due in April 2016. Earlier, in July 2014, the company had, as per a cashless restructuring proposal, exchanged FCCBs worth $146.2 million for a new FCCB series maturing in July 2019.

MIEL approves stake sale in MPCL

Monnet Ispat and Energy Limited’s (MIEL) board has approved the sale of stake in Monnet Power Company Limited (MPCL). MPCL, in which MIEL holds 87.5 per cent stake, is setting up a 1,050 MW coal-based thermal power plant at Angul in Odisha. The project was funded by a consortium of 27 banks, which have disbursed 85 per cent of the sanctioned amount. The project is facing cost overruns owing to delayed disbursals and approvals and land acquisition issues. Meanwhile, the lenders have expressed unwillingness to extend further credit to the company.

NCC INFRA enters into a share purchase agreement with Sembcorp for 16 per cent stake sale in SGPL

NCC Infrastructure Holdings Limited (NCC INFRA) has entered into a share purchase agreement with Sembcorp Utilities Pte Limited for the sale of a 16 per cent stake in Sembcorp Gayatri Power Limited (SGPL). The deal is valued at Rs 3.2 billion and entails the sale of 256 million equity shares with a face value of Rs 10 each. SGPL is implementing a 1,320 MW coal-based plant at Nellore in Andhra Pradesh, which is expected to be commissioned in 2016-17. Gayatri Energy Ventures Private Limited and NCC Limited together held 51 per cent stake in SGPL.

Mytrah Group secures $175 billion direct loan from ADB

The Mytrah Group has secured a $175 million direct loan from the Asian Development Bank (ADB), which will be deployed by the former to fund the development of wind and solar projects in the country. The company expects to achieve a capacity of 1,000 MW from wind and solar sources in the next 12 months. The loan will be provided on a project finance basis and detailed documentation for each is currently under negotiation.

EIB approves GBP 500 million loan for Caithness Moray transmission link (Scotland)

The European Investment Bank (EIB) will advance a loan worth GBP 500 million for the Caithness Moray transmission link to support a major reinforcement of the electricity transmission network in the north of Scotland. The line will also support the development of renewable energy projects based on wind, wave and tidal power in the region. Under the project, Scottish Hydro Electric Transmission has proposed the installation of a subsea cable, capable of carrying up to 1,200 MW of electricity between Caithness and Moray. It entails the construction of a 161 km undersea cable link which will deploy high voltage direct current technology and transmit up to 1.2 GW of power. The link will connect onshore power conversion stations at Blackhillock near Keith in Moray and Spittal in central Caithness. The project is due to be completed in 2018.

KFEAD grants $940 million for Bahrain’s grid project (Kuwait)

The Kuwait Fund for Arab Economic Development (KFAED) has signed a grant agreement and an amended agreement aggregating $940 million to fund and develop electricity networks in Bahrain. Of this, $200 million will be granted as a part of the Gulf Cooperation Council’s support to develop 220 kV and 66 kV electricity transmission networks in Bahrain. Meanwhile, under the amendment agreement, an amount of $740 million will be provided for the construction of three 400 kV transmission power stations, as against $250 million that was to be extended under the previous agreement.