Financial Briefs

India and overseas

PFC to extend Rs 66 billion loan to NTPC’s JV (India)

The Power Finance Corporation (PFC) has signed a memorandum of agreement with Meja Urja Nigam Private Limited (MUNPL) to provide a loan of Rs 66.08 billion to the latter. The loan will be used for developing the 1,320 MW Meja coal-based power project in Allahabad, Uttar Pradesh. MUNPL is a joint venture (JV) between NTPC and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited.

Adani Transmission Limited acquires two SPVs of RVPNL

Adani Transmission Limited has acquired 100 per cent equity stake in two special purpose vehicles (SPVs) of Rajya Vidyut Prasaran Nigam Limited (RVPNL) – Barmer Power Transmission Service Limited and Thar Power Transmission Service Limited. The company had secured the two projects, entailing the construction of 132 kV substations along with the associated transmission lines, in June 2016 through the competitive bidding route. Both the SPVs are now wholly owned subsidiaries of Adani Transmission.

Wind power projects put up for sale in seven states

Wind power projects with an aggregate capacity of 3,000 MW and a value of Rs 150 billion have reportedly been put up for sale in seven states. The move comes on the back of bleak demand for power from states, lack of tax incentives and low tariff rates under the competitive bidding system. It is estimated that about 700 MW of projects are up for sale in Tamil Nadu, 400 MW in Maharashtra, 100 MW each in Gujarat, Madhya Pradesh and Karnataka, and 300 MW in Rajasthan.

Canara Bank-led consortium seeks buyer for 270 MW thermal project

A consortium led by Canara Bank is seeking a buyer for a 270 MW thermal power plant in Nagpur, Maharashtra. The announcement was made after the plant came under the corporate debt restructuring plan. IDBI Capital Markets and Securities Limited invited expressions of interest from buyers on behalf of the consortium. The project was commissioned in 2013-14 but is still non-operational due to the non-availability of a power purchase agreement (PPA).

Azure Power raises $500 million from bond offering

Azure Power has raised around $500 million from the sale of bonds to overseas investors. The bonds attracted bids worth $1 billion, two times the size of the offering. The bonds will offer a yield of a little over 5.5 per cent. The proceeds from the sale will be used to finance the purchase of rupee-denominated non-convertible debentures and other purposes.

NEEPCO to launch IPO for 25 per cent stake sale

The government is planning to launch an initial public offering (IPO) for selling 25 per cent stake in North Eastern Electric Power Corporation Limited (NEEPCO). Currently, the government owns 100 per cent share in NEEPCO. The Department of Investment and Public Asset Management has invited bids from merchant bankers to manage the IPO. NEEPCO has an authorised share capital of Rs 50 billion and a paid-up capital of Rs 34.52 billion as on March 31, 2017.

IndiGrid to acquire four projects of its sponsor, Sterlite Power Grid Ventures

IndiGrid, the power sector’s first infrastructure investment trust (InvIT), is set to acquire four interstate power transmission projects of its sponsor, Sterlite Power Grid Ventures Limited. These are Purulia and Kharagpur Transmission Company Limited, RAPP Transmission Company Limited, East-North Interconnection Company Limited and Maheshwaram Transmission Limited. Barring the Maheshwaram project, all other projects have been commissioned. IndiGrid owns two of Sterlite Power’s assets – Jabalpur Transmission Company Limited and Bhopal Dhule Transmission Company Limited.

India Infrastructure Fund II raises Rs 2.5 billion to refinance two solar projects

IDFC Alternative Limited’s second Infrastructure Fund has secured long-term project finance of Rs 2.5 billion, which will be used to refinance two recently acquired solar power plants of the Punj Llyod Group and to repay existing loans. The funds have been raised through the sale of NDCs to infrastructure debt funds and financial institutions. Both the solar plants are located in Punjab and IDFC’s renewable energy arm, Vector Green Energy Limited, has entered into a long-term agreement with the state utility for the sale of power.

TNB raises RM 339 million for 50 MW solar PV project (Malaysia)

Malaysia’s state electricity utility, Tenaga Nasional Berhad (TNB), has raised RM 339 million from the Affin Islamic Bank Berhad for financing its first large-scale solar (LSS) project in Malaysia. The funds will be used to cover the working capital requirement of a 50 MW solar photovoltaic (PV) project being developed by TNB Sepang Solar Sdn Bhd (TSS). A long-term PPA for 21 years was signed between TSS and TNB for the project in March 2017. Commercial operation is expected to start in 2018.

Summit Power International to invest $1 billion in Bangladesh (Bangladesh)

Summit Power International, a leading IPP in Bangladesh, has announced plans to invest $1 billion in power projects in Bangladesh during the next three years. It will develop a gas-to-power generation facility and complete the Meghnaghat II natural gas-fired combined cycle power in the country. The International Finance Corporation has agreed to arrange funds for developing the power plant. Summit has entered into an MoU with General Electric to raise $50 million from equity.

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