Financial Briefs: India and overseas

India and overseas

NTPC lists $6 billion MTN programme on India INX (India)

NTPC has listed its $6 billion medium-term note (MTN) programme on the India International Exchange (INX) at the International Financial Services Centre in Gujarat. With this, NTPC has become India’s first quasi-sovereign company to list on the INX. The listing was done on January 24, 2018 on the Global Securities Market of the exchange. The listing will help NTPC raise funds at lower costs from international investors and allow foreign investors to access good quality Indian debt.

PFC sanctions funds worth Rs 13.5 billion to Bihar Grid Company

The Power Finance Corporation (PFC) has sanctioned funds worth Rs 13.5 billion to Bihar Grid Company Limited (a joint venture between Bihar State Power Holding Company Limited and Power Grid Corporation of India Limited). The funds have been provided for the construction of 16 units of 400 kV, 220 kV and 132 kV transmission lines, four units of associated substations and seven units of line bay extension in Bihar. The project is expected to cost Rs 16.88 billion and is proposed to be funded in a debt-equity ratio of 4:1, wherein the entire debt component will be funded by PFC. The project is expected to be commissioned by July 2021.

Private players express interest in acquiring stake in Odisha’s CESU

Private players Tata Power, the Adani Group, Torrent Power and the Greenko Group have reportedly expressed interest in acquiring stake in the Central Electricity Supply Utility of Odisha (CESU). This is the first instance of discom privatisation after the Delhi discoms were privatised in 2003. CESU was earlier privatised in 1999 after a distribution licence was granted to AES Corporation. However, the latter’s licence was revoked by the Odisha Electricity Regulatory Commission in 2005 and the discom was managed by an administrator appointed by the regulator. Bids for the stake sale are expected by March 2018.

CPPIB to acquire 6.3 per cent stake in ReNew Power

The Canada Pension Plan Investment Board (CPPIB) has agreed to acquire a 6.3 per cent stake in ReNew Power Ventures Private Limited from the Asian Development Bank (ADB) for $144 million. The transaction is in line with CPPIB’s strategy to expand its power and renewable energy portfolio. Following the completion of the deal, CPPIB will become the third largest investor in the company.

IDFC Alternatives acquires 40 MW solar project from IL&FS Energy

IDFC Alternatives has reportedly acquired a 40 MW solar power project in Madhya Pradesh from IL&FS Energy Development Company Limited. Vector Green Energy Private Limited, the renewable energy arm of IDFC Alternatives, has made the acquisition. The project was awarded to IL&FS Energy by the Solar Energy Corporation of India under the Jawaharlal Nehru National Solar Mission and was commissioned in 2015. The transaction is a part of Vector Green’s strategy to expand its renewable energy portfolio.

IREDA and RUMSL sign a sub-loan agreement for two projects

The Indian Renewable Energy Development Agency (IREDA) and Rewa Ultra Mega Solar Limited (RUMSL) have signed a sub-loan agreement to finance the shared infrastructure of two solar power projects in Madhya Pradesh. These are the 750 MW Rewa Ultra Mega Solar Park and the 250 MW Mandsaur Solar Park. Under the World Bank’s line of credit, IREDA has sanctioned its first loan worth Rs 2.1 billion to RUMSL for financing these two projects.

Sterlite Power buys 28.4 per cent stake in its transmission infrastructure business from SCPE

Sterlite Power Grid Ventures Limited has acquired a 28.4 per cent stake worth Rs 10.1 billion in its transmission infrastructure business from Standard Chartered Private Equity Limited (SCPE). With this, Sterlite Power now holds 100 per cent stake in its business. SCPE had acquired the stake in Sterlite Power for Rs 5 billion in 2014 and this was the first private foreign investment in the Indian transmission segment.

World Bank agrees to invest $486 million in transmission project (Nigeria)

The World Bank has agreed to invest $486 million to strengthen the electricity grid in Nigeria. The investment has been made under the Nigeria Electricity Transmission Project and aims to augment the country’s transmission network. This move is expected to provide a significant impetus to the power sector and contribute to Nigeria’s economic growth.

ADB signs a $100 million loan facility with CEIL to fund WtE plants (Vietnam)

ADB has signed a $100 million loan facility agreement with China Everbright International Limited (CEIL) to fund a number of municipal waste-to-energy (WtE) plants in primary and secondary cities in the Mekong delta, Vietnam. The deal marks the first municipal WtE public-private partnership project in the country. The WtE plants will have advanced clean technologies and each plant will treat municipal solid waste and supply electricity to the local power grid.