Financial Briefs

India and overseas

JSW Energy to acquire JPVL’s 500 MW Bina TPP (India)

JSW Energy Limited has executed definitive agreements with Jaiprakash Power Ventures Limited (JPVL) for the acquisition of its 500 MW Bina thermal power plant (TPP) at Sagar in Madhya Pradesh. The enterprise value of the deal is Rs 27 billion. This is the second acquisition deal that JSW Energy has signed with JPVL. Last year, it acquired JPVL’s two hydropower projects for Rs 97 billion. In another development, the Competition Commission of India has accorded approval to JSW Energy for the acquisition of Jindal Steel and Power Limited’s 1,000 MW TPP at Raigarh in Chhattisgarh.

GEL sells stakes in two transmission projects to ATL

GMR Energy Limited (GEL) has entered into definitive agreements with Adani Transmission Limited (ATL) for the sale of two transmission projects –  Maru Transmission Services Limited (MTSL) and Aravali Transmission Services Limited (ATSL). GEL has offloaded 74 per cent stake in MTSL and 49 per cent stake in ATSL, with an option to offload the balance stake in the projects later for an equity value of Rs 1 billion. GEL was awarded both the transmission projects on a build-own-operate-maintain basis in 2010. While MTSL operates 270 km of 400 kV/220 kV transmission lines in Rajasthan, which were commissioned in 2013, ATSL operates 96 km of 400 kV transmission lines in Rajasthan, commissioned in 2014.

NTPC plans to raise around $250 million via offshore green bonds

NTPC Limited is reportedly planning to sell rupee-denominated offshore green bonds to raise up to $250 million by the end of July 2016. To achieve this, it is planning to tap the offshore masala bond market to raise $150 million-$250 million and may look to raise a further $3 billion-$4 billion from the offshore market. The company recently announced that it has revised its corporate plan to add wind as well as solar power projects to its portfolio. Going forward, NTPC Limited plans to add 2,500 MW of conventional and renewable capacity every year.

CESC to raise Rs 7.63 billion via term loans

CESC Limited is considering raising Rs 7.63 billion through term loans. The company will approach Punjab National Bank, IDBI Bank and HDFC Bank for term loans of Rs 1 billion, Rs 2 billion and Rs 1.5 billion respectively. Further, the company will approach ICICI Bank for two term loans aggregating Rs 2.62 billion and Union Bank of India for an incremental working capital facility of Rs 510 million.

Amin Group to acquire Jyoti Structures for Rs 5 billion

The Amin Group is at an advanced stage of acquiring a majority stake in Jyoti Structures Limited, through an equity investment of Rs 5 billion. In August 2015, a consortium of 21 banks led by the State Bank of India took over operational control of Jyoti Structures by invoking a strategic debt restructuring, following its failure to repay the debt of around Rs 38 billion. The Amin Group is a diversified business conglomerate operating in sectors such as power generation and transmission.

NLC to acquire 75 per cent stake in DVC’s Purulia TPP

Neyveli Lignite Corporation (NLC) is at an advanced stage of acquiring around 75 per cent stake in Damodar Valley Corporation’s (DVC) upcoming 1,200 MW Raghunathpur coal-based plant at Purulia in West Bengal. The plant has witnessed a delay of five years, resulting in a cost escalation of Rs 38 billion, against the initial cost of Rs 50 billion. The financial and technical due diligence for the deal is being undertaken by SBI Capital Markets Limited.

Fortis receives CFIUS approval to buy US-based ITC (Canada)

Canadian utilities group Fortis Incorporated has received the approval of the Committee on Foreign Investment in the United States (CFIUS) to acquire US electricity transmission company ITC Holdings Corporation. In February 2016, Fortis and ITC announced that they had agreed to merge under a deal valued at about $11.3 billion. As per the deal, for each ITC share, the shareholders will receive $22.57 in cash, plus 0.752 per cent of a Fortis share. After the deal closes, investors in the US company will own about 27 per cent of the merged business and ITC will operate as a subsidiary of Fortis. The companies are expected to finalise their merger by the end of this year. In April 2016, GIC Pte Limited, formerly known as Government of Singapore Investment Corporation Pte Limited, concluded a deal with Fortis to buy the latter’s 19.9 per cent stake in ITC for a sum of $1.23 billion.

Gas-based plant secures funding from IFC (Jordan)

Saudi Arabia-based Acwa Power’s 485 MW gas-based power plant in Jordan has secured an initial amount of $75 million from the International Finance Corporation (IFC). In addition, IFC is likely to mobilise another $200 million in the future. China’s Shandong Electric Power Construction Corporation III is the engineering, procurement and construction contractor for the $475 million project. The plant is scheduled for commissioning in May 2018.


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