Financial Briefs

India and overseas

Powergrid approves investment worth Rs 191.85 billion across four transmission projects (India)

Power Grid Corporation of India Limited (Powergrid) has approved an investment of Rs 191.85 billion for implementing four transmission projects. Of this, Rs 147.33 billion is for Scheme 1 of the high voltage direct current (HVDC) bipole link between the western region (Raigarh, Chhattisgarh) and the southern region (Pugalur, Tamil Nadu–North Trichur, Kerala). Scheme 1 comprises the 6,000 MW Raigarh–Pugalur HVDC system, which has a commissioning schedule of 42 months. Of the remaining amount, Rs 35.19 billion has been approved for the Green Energy Corridors Interstate Transmission System Part D project, with a commissioning schedule of 36 months; Rs 7.66 billion for the Eastern Region System Strengthening Scheme (ERSS)–XI, with a commissioning schedule of 30 months; and Rs 1.67 billion for ERSS–XIV, with a commissioning schedule of 30 months.

DoD divests 11.36 per cent stake in NHPC

The Department of Disinvestment (DoD) has divested an 11.36 per cent stake in NHPC Limited through the offer-for-sale route. Of the 1.26 billion shares on offer, at a floor price of Rs 21.75 each, 1 billion shares were for non-retail investors and the remaining were for retail investors, who were offered a 5 per cent discount on the floor price. Overall, the issue was oversubscribed 1.65 times. While the non-retail portion was subscribed by 156 per cent, the retail portion was subscribed by 57.98 per cent. Following the sale, the government’s stake in the company has reduced to 74.6 per cent from 85.96 per cent.

NTPC raises Rs 10 billion through bond issue

NTPC has raised Rs 10 billion through the issue of bonds, carrying a coupon rate of 8.05 per cent with a tenor of 10 years. The bond issue has been oversubscribed 2.8 times. The company had put on offer non-convertible debentures (NCDs) totalling Rs 5 billion with a greenshoe option for another Rs 5 billion on a private placement basis.

JSW Energy to acquire JSPL’s 1,000 MW Raigarh plant

JSW Energy has entered into a definitive agreement with Jindal Steel and Power Limited (JSPL) to acquire the latter’s 1,000 MW Raigarh coal-based power plant in Chhattisgarh. As per the agreement, the cost of the deal is linked to an initial enterprise value of Rs 40 billion, which may be increased to Rs 65 billion in case the pre-decided fuel supply and power offtake arrangements are met. JSW will extend an interest-bearing advance of Rs 5 billion to JSPL. The deal is scheduled to be concluded on June 30, 2018.

ATL raises Rs 3.3 billion through bond issue on a private placement basis

Adani Transmission Limited (ATL) has raised Rs 3.3 billion through the issue of bonds on a private placement basis. The company issued 3,300 rated, listed, taxable, secured and redeemable NCDs with a face value of Rs 1 million each in two tranches. While the first tranche comprised 1,650 zero coupon-rated NCDs, the second tranche comprised 1,650 NCDs with a coupon rate of 9.35 per cent.

ADB approves $175 million loan to MEIL for renewable energy projects

The Asian Development Bank (ADB) has approved a loan of $175 million to Mytrah Energy (India) Limited (MEIL). MEIL will utilise the funds for the development of renewable energy projects in the country. These include wind power projects totalling 476 MW in Rajasthan, Madhya Pradesh, Andhra Pradesh and Karnataka, and solar photovoltaic power projects of 100 MW in Telangana and Punjab.

Crompton Greaves signs SPA with Pauwels Spaco for the sale of its international T&D business

Crompton Greaves has signed a share purchase agreement (SPA) with Pauwels Spaco Limited, a special purpose vehicle of First Reserve International, for the sale of its transmission and distribution (T&D) business outside India. The company signed a binding agreement with First Reserve for the sale of its T&D assets in March 2016, at an enterprise value of Euro 115 million. The transaction is expected to be completed by October 31, 2016.

Bolivian BCB to finance Bolivia-Argentina interconnection project (Bolivia)

Bolivian Ministro de Hidrocarburos y Energía, Banco Central de Bolivia (BCB) and state-owned electricity company Empresa Nacional de Electricidad have signed an agreement to extend BOB 483.13 million for implementing the Juana Azurduy de Padilla transmission line project, an interconnection between Bolivia and Argentina. This project comprises a 500 kV, 110 km (40 km in Bolivian territory and 70 km in Argentina) transmission line from the Yacuagua substation in Bolivia to the Tartagal substation in Argentina. The project is a part of the $5,854.4 million Plan de Desarrollo Económico y Social of 2016-20 of Bolivia.

KfW bank to finance power grid improvements (Bangladesh)

German development bank KfW, on behalf of the Federal Ministry for Economic Cooperation and Development, has signed a loan agreement worth Euro 137.5 million, in addition to a grant of Euro 2 million from the budget funds for investment-related technical support, to finance power transmission networks and substations in Bangladesh. The loan will be used to finance the construction of around 11 substations, their connection to the grid, and the construction and reinforcement of more than 200 km of power transmission lines across the country.

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