Financial Briefs: India and overseas

India and overseas

REC raises $300 million through dollar bonds (India)

The Rural Electrification Corporation (REC) has raised $300 million through dollar bonds. The 10-year Regulation-S bonds were priced at a coupon of 4.625 per cent. The bond issuance has received an overwhelming response with a subscription of over $900 million. In a separate development, Moody’s Investor Service has assigned Baa3 rating to REC’s proposed senior unsecured notes issued under its $3 billion medium-term note programme. The bonds will have a maturity of 10 years and will be listed on Singapore Exchange Securities Trading Limited and the International Securities Market of the London Stock Exchange.

EIB signs Euro 150 million loan with IREDA to fund clean energy projects

The European Investment Bank (EIB) has signed a long-term agreement with the Indian Renewable Energy Development Agency (IREDA) worth Euro 150 million to finance clean energy projects in the country. This is the second line of credit extended by EIB to IREDA. The previous line of credit had enabled the development of projects aggregating 600 MW over a span of four years.

IndiGrid acquires transmission assets worth Rs 14.1 billion from Sterlite Power

The India Grid Trust (IndiGrid), an infrastructure investment trust (InvIT), has acquired three transmission assets worth Rs 14.1 billion from its sponsor, Sterlite Power Grid Ventures (SPGV). The trust has acquired RAPP Transmission Company Limited, Purulia Kharagpur Transmission Company Limited and Maheshwaram Transmission Limited from SPGV. With these acquisitions, IndiGrid now has assets worth Rs 53 billion under its management. IndiGrid has also agreed to invest Rs 2.3 billion in Patran Transmission Company, a third-party asset owned by Techno Electric. The assets will increase IndiGrid’s total transmission line portfolio from 1,900 ckt. km to 3,300 ckt. km across nine states.

PFC to provide financial aid of Rs 50.2 billion to power utilities in Uttar Pradesh

The Power Finance Corporation (PFC) has signed MoUs with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited, Uttar Pradesh Power Transmission Corporation Limited and Uttar Pradesh Power Corporation Limited for providing financial assistance aggregating Rs 50.2 billion to the entities over the next four years. The financial assistance has been provided for upcoming greenfield projects, development of coal mines, strengthening of the distribution and transmission infrastructure network in the state, and extension of thermal generation projects at Jawaharpur, Panki, Harduaganj, Anpara and Obra, among others.

JSW Energy acquires JSW Electric Vehicles

JSW Energy Limited has acquired 100 per cent stake in JSW Electric Vehicles Private Limited (JSWEV) at a total face value of Rs 100,000. With this acquisition, JSW Energy has marked its foray into the electric vehicle (EV), and energy storage systems and charging infrastructure segments. The acquired company was incorporated in July 2017 but is yet to commence business.

USTDA extends grant to BRPL and TPDDL

BSES Rajdhani Power Limited (BRPL) has received a $1 million grant from the US Trade and Development Agency (USTDA) to develop and deploy India’s first Behavioural Energy Efficiency Programme in south and west Delhi. The programme aims to empower consumers to reduce energy waste, improve energy efficiency and lower peak hour consumption. The pilot project will be undertaken by US-based Oracle America, Inc., and will cover a total of 200,000 customers in south and west Delhi. The project will commence from April 1, 2018 and is expected to be completed by December 31, 2019. USTDA has also extended a grant to Tata Power Delhi Distribution Limited (TPDDL) to develop opportunities in distributed energy resource (DER) areas such as the integration of rooftop solar, energy storage solutions and electric vehicles. The grant, which is part of the second phase of technical assistance, will help TPDDL evaluate different combinations of DERs that it could implement to improve its electric grid.

 GCF approves a credit of $100 million to NABARD for rooftop solar projects

The Green Climate Fund (GCF) has approved a proposal by the National Bank for Agriculture and Rural Development (NABARD) for a line of credit for rooftop solar development in the commercial, industrial and residential housing sectors in the country. Under the proposal, GCF will provide $100 million to NABARD as a part of a $250 million programme aimed at supporting the development of 250 MW of rooftop photovoltaic capacity. The proposal will be executed through Tata CleanTech Capital Limited, a joint venture between Tata Capital and the International Finance Corporation.

ADB provides $235 million loan for renewable energy expansion in ASEAN countries

The Asian Development Bank (ADB) has agreed to provide a loan of $235 million to BGrimm Power Public Company Limited, one of the largest power producers in Thailand, for the implementation of its distributed power projects in the Association of Southeast Asian Nations (ASEAN) countries. The project will involve the development of distributed utility-scale solar, wind, biomass, waste-to-energy, gas-fired power, energy storage, and associated infrastructure in ASEAN countries. With this financing, BGrimm Power’s total distributed power generation capacity is expected to increase by over 50 per cent to 2.5 GW by 2022.