Financial Briefs

India and overseas

Powergrid approves investment of Rs 3.65 billion for NERSSS IV (India)

The board of Power Grid Corporation of India Limited (Powergrid) has approved an investment of Rs 3.65 billion for the North Eastern Region System Strengthening Scheme (NERSSS) IV. These funds would be used to augment the transformers at the 400/220 kV Misa substation and the reactors at the Balipara and Bongaigaon substations, upgrade the 132 kV double-circuit (D/C) Silchar–Imphal line to the 400 kV level, extend the 400/132 kV Silchar (Powergrid) substation, and undertake reconductoring of the 132 kV D/C Agartala gas-based power project-Agartala (state) transmission line.

NTPC Limited raises Rs 10.72 billion through bond issue

NTPC Limited has raised Rs 10.72 billion through the issue of bonds. The bonds were oversubscribed 1.74 times, with Rs 13.05 billion of bids received against the issue size of Rs 7.5 billion. The bonds have a door-to-door maturity of 15 years and a coupon rate of 8.1 per cent. The company will utilise the proceeds from the issue to fund its capital expenditure.

PFC acquires 23 per cent stake in SMHPCL

The Power Finance Corporation (PFC) has acquired around 23 per cent stake in Shree Maheshwar Hydel Power Corporation Limited (SMHPCL). It has undertaken the acquisition by invoking pledged shares and partially converting debt into equity, in the wake of a loan default of Rs 7 billion by SMHPCL. Following this, PFC owns 132 million equity shares of Rs 10 each in SMHPCL’s paid-up equity share capital.

Adani Transmission raises Rs 7.5 billion through NCD issue

Adani Transmission Limited has raised Rs 7.5 billion through the issue of non-convertible debentures (NCDs). It has issued 7,500 rated, listed, taxable, secured and redeemable NCDs of a face value of Rs 1 million each on a private placement basis.

World Bank approves $625 million loan for rooftop solar PV installations

The World Bank has approved a loan of $625 million for the installation of rooftop solar photovoltaic (PV) plants in the country. It has also approved a co-financing loan of $120 million on concessional terms and a $5 million grant from the Climate Investment Fund’s Clean Technology Fund. The proceeds from the loan will be utilised to finance the installation of at least 400 MW of grid-connected rooftop solar PV plants. The loan will be extended to the State Bank of India, which will further on-lend funds to solar PV developers/aggregators and end-users.

Tata Power Company to acquire 25 per cent stake in Resurgent Power for Rs 18 billion

Tata Power Company Limited has decided to pick up 25 per cent stake in Resurgent Power for Rs 18 billion ($300 million). Through this, the company aims to expand its portfolio of coal-based and hydropower generation projects as well as transmission projects. Resurgent Power is founded by a consortium comprising the Kuwait Investment Authority, the Oman State General Reserve Fund, Canadian pension fund Caisse de depot placement du Quebec, and ICICI Ventures, with the three global companies owning 65 per cent stake and ICICI Ventures owning 10 per cent stake.

TPREL acquires Welspun Renewables for around Rs 100 billion

Tata Power Renewable Energy Limited (TPREL) has signed a share purchase agreement with Welspun Renewables to acquire the latter’s 1.1 GW green energy portfolio for an estimated Rs 100 billion ($1.4 billion). The deal marks one of India’s largest merger and acquisition deals in the solar segment. Welspun Renewables is a 100 per cent subsidiary of Welspun Energy Private Limited.

Vietnam signs loan agreement worth JPY 55 billion with JICA (Vietnam)

The Government of Vietnam has signed a JPY 54.98 billion Official Development Assistance loan agreement with the Japan International Cooperation Agency (JICA) for the Thai Binh Thermal Power Plant and Transmission Lines Construction Project IV. The funds will be used for construction; material and equipment procurement to construct the power station, transmission lines and substations; and consulting services such as bidding assistance and construction supervision. They will also be used to construct shared facilities with adjacent power stations. The project involves the construction of a 600 MW coal-fired thermal power plant and 220 kV transmission lines and substations for connecting the power station and the power grid in northern Vietnam to meet power demand in the region. It will contribute to stable power supply and strengthen international competitiveness.

ZESCO signs loan worth $122 million with Standard Chartered and USAID (Zambia)

ZESCO Limited, Zambia’s state-owned vertically integrated power utility, has signed a loan agreement worth $122 million with Standard Chartered Bank, which has partnered with the United States Agency for International Development (USAID). The loan will help ZESCO in meeting its strategic plan to improve the quality of electricity and enhance connections to the national grid.

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