Financial Briefs

India and overseas

PFC-led consortium to provide Rs 110.67 billion to NUPPL (India)

The Power Finance Corporation (PFC), in collaboration with the Rural Electrification Corporation (REC) and the State Bank of India (SBI), has secured a letter of award (LoA) from Neyveli Uttar Pradesh Power Limited (NUPPL) to fund the debt for the 1,980 MW Ghatampur coal-based thermal power station. The consortium will provide financial assistance worth Rs 110.67 billion to NUPPL for the project. The project is being developed at an estimated cost of Rs 172.37 billion, to be funded in a debt-equity ratio of 70:30. Of the total debt of Rs 120.67 billion, the PFC-led consortium will provide Rs 110.67 billion and the remaining amount will be provided by Bank of India. The project is expected to be commissioned by November 2021.

JSW Energy shelves its plan to acquire the 500 MW Bina power plant

JSW Energy Limited has shelved its plan to acquire the 500 MW Bina coal-based power plant in Madhya Pradesh from Jaiprakash Power Ventures Limited (JPVL). The deal has been called off owing to the delay in getting the requisite approvals from the lenders. In May 2017, JSW Energy had announced that the indicative time period for the acquisition had been extended to December 31, 2017 from May 31, 2017. However, further delays in the acquisition led to the cancellation of the deal. The acquisition was a part of the strategic debt restructuring of JPVL. In a separate development, JSW Energy has incorporated its wholly owned subsidiary, JSW Solar Limited, to develop projects in energy storage systems, microgrids and renewable energy.

IFC to invest $440 million in the 750 MW Rewa Solar Park

The International Financial Corporation (IFC) will invest $440 million (about Rs 28 billion) in the 750 MW Rewa ultra mega solar park in Madhya Pradesh. The investment will be made in the form of debt provided to three companies – Mahindra Renewables Private Limited, the Acme Group, and Actis Llp. IFC has already signed the deal with Actis and the Acme Group for $140 million and $150 million respectively.

ReNew Power raises Rs 22.35 billion through NCDs

ReNew Power Ventures Private Limited has raised Rs 22.35 billion through non-convertible debentures (NCDs) for the repayment of its existing loans. The issuance was undertaken in two parts – credit-enhanced NCDs worth Rs 7.6 billion and a multi-issuer cross-collateralised rupee bond involving multiple power distribution companies, valued at Rs 14.75 billion. The latter involves the discoms of Andhra Pradesh, Rajasthan and Gujarat and is spread across eight special purpose vehicles and 12 projects aggregating 234 MW of capacity.

Orb Energy raises $15 million for expanding operations

Solar equipment manufacturer Orb Energy Private Limited has raised $15 million (Rs 950 million) through a combination of a debt and equity round from Dutch development bank FMO, the Overseas Private Investment Corporation (OPIC), African finance institution Pamiga, and Germany’s development finance institution DEG. Of the total amount, $10 million has been raised as long-term debt from OPIC. The proceeds will be used to augment the in-house finance facility of rooftop solar panels for Indian solar manufacturers and for the expansion of Orb’s operations.

Husk Power Systems raises $20 million for mini-grid business expansion

Rural distributed generation utility Husk Power Systems has raised $20 million from Shell Technology Ventures LLC, Swedish development finance institution Swedfund International, and ENGIE Rassembleurs d’Energies (the ENGIE Group’s impact investment fund) for the expansion of its mini-grid business in Asia and Africa. The company operates one of the lowest-cost hybrid power plants and distribution networks in India and Tanzania, and aims to develop a $190 billion mini-grid market by 2030.

EIB to provide $150 million for renewable energy projects (Peru)

The European Investment Bank (EIB) will provide $150 million to Enel Green Power Peru, a subsidiary of the Peru Group, for the development of renewable energy projects in the country. The funds will be utilised for the development of a wind farm and a solar power plant with an aggregate capacity of 312 MW. The 132 MW wind farm will comprise 42 turbines and offset 288,000 tonnes of carbon dioxide annually. The wind farm is located in the Nazca region and the solar plant is being built in Moquegua. Both projects are slated for completion in 2018.

AfDB forms partnership to invest $55 million in off-grid energy projects (Africa)

The African Development Bank (AfDB), in partnership with Calvert Impact Capital (CIC), the Global Environment Facility (GEF) and the Nordic Development Fund (NDF), has invested a total of $55 million for off-grid energy projects across Africa. Through the partnership, AfDB has provided funds worth $30 million in the Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI OGEF). The CIC, GEF and NDF have contributed $10 million, $8.5 million and Euro 6 million respectively. In addition, NDF will provide a grant of Euro 0.5 million for technical assistance to support deal structuring and capacity development. FEI OGEF is a US $100 million blended finance debt fund designed to provide loans in local and hard currencies to off-grid energy companies with the dual objectives of scaling up access to clean electricity for off-grid households and crowding in local financial institutions as co-lenders.

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