Financial Briefs

India and overseas

REC to provide Rs 140 million loan for 2,400 MW Patratu power plant

The Rural Electrification Corporation and Patratu Vidyut Utpadan Nigam Limited, a subsidiary of NTPC Limited, have signed a loan agreement worth Rs 140 billion for setting up the 2,400 MW Patratu Super Thermal Power Plant Phase I in Jharkhand. The project entails a cost of around Rs 186.68 billion and is being funded in a debt-equity ratio of 75:25.

EESL secures $454 million funding from GEF

The Global Environment Facility (GEF) will provide funding of $454 million to Energy Efficiency Services Limited (EESL) for the execution of the “Creating and Sustaining Markets for Energy Efficiency” project. The funding comprises a GEF grant of $20 million and co-financing of $434 million in the form of loans and equity. EESL will utilise these funds for programmes such as street lighting, domestic lighting and agricultural pumps. It will enable EESL to mitigate 60 million tonnes of carbon dioxide emissions and help in India’s transition to a low-carbon economy.

SBI extends loans of over Rs 23 billion for rooftop solar projects

The State Bank of India (SBI) has extended loans worth more than Rs 23 billion to seven companies for financing grid-connected rooftop solar projects aggregating 575 MW. The companies include JSW Energy Limited, Tata Power Renewable Energy Limited and the Adani Group. SBI has availed of credit facilities aggregating $625 million from the World Bank for on-lending to such projects. So far, SBI has sanctioned 50 per cent of the line of credit to finance 43 projects aggregating 695 MW.

ATL acquires RInfra’s WRSSS assets for Rs 100 billion

Adani Transmission Limited (ATL) has acquired the operational transmission assets of Reliance Infrastructure Limited (RInfra) for Rs 100 billion under the Western Region System Strengthening Scheme (WRSSS). As a part of the deal, ATL has acquired 100 per cent stake in Western Region Transmission Maharashtra Limited and Western Region Transmission Gujarat Limited, which have an aggregate transmission network of 3,063 ckt. km. Following the acquisition, ATL’s total transmission portfolio has reached 8,500 ckt. km. RInfra will utilise the proceeds from the asset sale for debt reduction.

Resurgent Power and Brookfield submit final bids to acquire JPVL

Canada-based Brookfield Asset Management and Resurgent Power Ventures have put in final bids for acquiring a stake in Jaiprakash Power Ventures Limited (JPVL). Earlier, Adani Power, JSW Energy and Edelweiss Asset Reconstruction Company Limited had also expressed interest in the stake acquisition. The lenders led by ICICI Bank invited bids for selling at least 30 per cent stake in JPVL after the company underwent strategic debt restructuring (SDR). A debt of Rs 30.58 billion was converted into equity upon invocation of the SDR.

GIP to acquire Equis Energy for $5 billion

US-based infrastructure fund manager, Global Infrastructure Partners (GIP) has agreed to acquire Singapore-based Equis Energy Limited for $5 billion including debt, marking one of the largest deals in the clean energy sector. The acquisition will be led by a GIP-led consortium, which will pay $3.7 billion in cash to Equis Energy and take over its liabilities worth $1.3 billion. Other members of the consortium include CIC Capital Corporation, the China Investment Corporation and Canada’s Public Sector Pension Investment Board. Equis Energy is the largest independent renewable energy producer in the Asia Pacific. It has a renewable energy capacity of 900 MW in India.

Engie to sell 75 per cent stake in three UK thermal generation assets (France)

French multinational electric utility Engie has signed an agreement to sell its 75 per cent stake in three UK thermal generation assets to Energy Capital Partners for a total value of Euro 232 million. The assets are the 1,197 MW Saltend combined cycle power plant, the 515 MW Deeside gas-fired power plant and the 129 MW Indian Queens oil-fired peaking plant. The deal is part of Engie’s 2016-18 transformation plans to invest in low-carbon projects.

IFC-led consortium provides $653 million funding for solar plants in Egypt (Egypt)

The International Finance Corporation (IFC) and a consortium of nine international banks have completed a $653 million debt package deal to provide funding for 13 solar power plants near Aswan, Egypt. The plants, aggregating 752 MW, entail a cost of $823 million and will be a part of the Benban Solar Park, which will be the largest solar installation in the world. They are being set up under the country’s feed-in tariff financing programme, which will supply power to 350,000 residents and create up to 6,000 jobs during the construction phase.

ABP to invest over $384 million in three PV projects (USA)

The Netherlands based Stichting Pensioenfonds ABP (ABP) has agreed to invest $384 million in three utility-scale PV projects totalling 858 MW in the US. The projects are owned by Capital Dynamics, a Swiss-based asset management company. The projects have individual capacities of 250 MW, 328 MW and 280 MW, and are located in Nevada and California.

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