Financial Briefs: India and overseas

India and overseas

SPTL achieves financial closure for Haryana transmission project (India)

Sterlite Power Transmission Limited (SPTL) has achieved financial closure for its transmission project in Haryana. The financial closure was achieved by Yes Bank Limited by underwriting a project finance facility of Rs 8 billion for a period of 15 years. The Rs 10 billion project entails the construction of a 170 km interstate transmission line and three substations. The project is expected to increase power supply in Haryana by 2,000-3,000 MW.

RInfra sells entire stake in IEX for Rs 1.03 billion

Reliance Infrastructure Limited (RInfra) has completed the sale of its entire 4.12 per cent stake in the Indian Energy Exchange (IEX) for Rs 1.03 billion. With this, IEX has achieved a valuation of Rs 25 billion. In March 2016, Jindal Steel and Power Limited had sold 4.12 per cent stake in IEX to Motilal Oswal Private Equity. Meanwhile, in February 2016, Bessemer Venture Partners sold 10 per cent stake in IEX to TVS Capital and the Dalmia Group (5 per cent each).

GEPL at an advanced stage for acquiring Sorang HEP

Greenko Energy Private Limited (GEPL) is at an advanced stage of acquiring the 100 MW Sorang hydroelectric project (HEP) at Kinnaur in Himachal Pradesh from the Abu Dhabi National Energy Company, PJSC (TAQA) for Rs 6.5 billion. This is the second instance where GEPL has acquired distressed renewable assets in India from a global energy utility. In September 2016, the company had acquired 1.7 GW of wind and solar power assets in India from SunEdison Inc. for $315 million (around Rs 21.35 billion).

World Bank invests $125 million in HFEL

The World Bank has announced an equity investment of $125 million in Hero Future Energies Limited (HFEL) through its private sector investment arm, the International Finance Corporation (IFC). The funds, to be invested by IFC and IFC Global Infrastructure Fund, will enable HFEL to set up greenfield solar and wind power projects aggregating 1 GW of capacity during 2017-18. HFEL is also in discussions with IFC for raising debt.

JSW Energy receives approval for raising Rs 7.5 billion

JSW Energy Limited’s board has given its approval for raising funds up to Rs 7.5 billion through private placement of redeemable non-convertible debentures. Proceeds from the issue will be used for general corporate purposes, business operations, working capital requirements and repayment of JSW Energy’s existing debt.

JPVL seeks shareholders’ approval for conversion of debt to equity under SDR

Jaiprakash Power Ventures Limited (JPVL) has sought its shareholders’ approval for converting a part of its outstanding debt of Rs 30.58 billion to 3 billion equity shares of Rs 10 each under the Reserve Bank of India’s strategic debt restructuring (SDR) scheme. Following the issue, the company’s total public shareholding will increase to 68.84 per cent from the current 36.4 per cent.

NLC India in discussions with IBPIL for acquiring Jharsuguda TPP 

NLC India Limited is reportedly in discussions with Ind-Barath Power Infra Limited (IBPIL) for the acquisition of the latter’s 700 MW coal-fired power plant at Jharsuguda in Odisha. The deal is estimated to be worth Rs 50 billion-Rs 56 billion. In August 2016, NLC had issued a tender inviting independent power producers and state electricity boards interested in selling their coal- or lignite-based generation assets with a capacity of more than 200 MW.

World Bank sanctions Rs 13.76 billion for Tripura’s transmission project

The World Bank has sanctioned funds to the tune of Rs 13.76 billion for a transmission project in Tripura. The project will be implemented in five phases and involves the elevation of existing substations to 132 kV the voltage level, renovation works in areas such as Ambassa, Jirania and Udaipur, and capacity augmentation of power substations. About Rs 4.61 billion have already been released for work in the first phase. The project, expected to be completed by 2020, is likely to help Tripura State Electricity Corporation Limited to strengthen its infrastructure and lower its transmission losses.

KEPCO to invest KRW 23 trillion in the transmission sector (South Korea)

South Korean power utility Korea Electric Power Corporation (KEPCO) is planning to invest KRW 23.28 trillion in the construction and reinforcement of transmission and transformer facilities during 2017. Of the total, KRW 1.17 trillion has been allocated for the construction sector, including new transmission lines, and a budget of KRW 1.65 trillion has been allocated to reinforce facilities for reducing power outages. The company will invest KRW 2.28 trillion in new construction and operation facilities in 2017.

Loans worth ARS 2.02 billion approved for Transener’s business operations (Argentina)

The Government of Argentina has approved loans aggregating ARS 2.02 billion for the country’s high voltage grid operator, Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. (Transener), and its subsidiary Empresa de Transporte de Energía Eléctrica por Distribución Troncal de la Provincia de Buenos Aires Sociedad Anónima (Trans-ba, S.A.). The country’s wholesale power market administrator, Compañía Administradora del Mercado Mayorista Eléctrico (Cammesa), will provide funds. The loans are likely to help Transener cover its operating costs and undertake infrastructure investments, until a new national framework for the funding of the transmission system is established.