Financial Briefs

India and overseas

ReNew Power acquires Ostro Energy from Actis Capital (India)

ReNew Power Ventures Private Limited has acquired Ostro Energy Private Limited from private equity firm Actis Capital. Ostro Energy has a capacity of more than 1,100 MW, of which nearly 850 MW is already commissioned. With this acquisition, ReNew Power’s aggregate capacity will increase from 4,500 MW to 5,600 MW. Concurrent to this deal, ReNew Power’s existing investor, the Canada Pension Plan Investment Board, will make an additional investment of $247 million in ReNew Power to support the acquisition, increasing the combined investment in ReNew Power to $391 million.

 SBI plans to lend Rs 80 billion to SJVN Limited’s Nepal project

The State Bank of India (SBI) is planning to lend Rs 80 billion to SJVN Limited for the 900 MW Arun III hydropower project in Nepal. SJVN, which is constructing the plant, has entered into an informal agreement with SBI to avail of the loan, and a formal agreement is expected to be finalised soon. In addition, Punjab National Bank  will lend Rs 3.6 billion for the construction of the 268 km long 400 kV transmission line associated with the project, through its joint venture (JV) Everest Bank Limited. Further, the project will receive funding worth Rs 4.06 billion as a bridge loan from banks in Nepal. In addition, SJVN will invest Rs 25 billion of its own resources in the project. The project is expected to be completed by September 2022.

SoftBank Group to invest $930 million in solar JV in India

The SoftBank Group has signed an agreement with China’s Golden Concord Group Limited (GCL) to set up a JV firm in India in the solar segment at an investment of $930 million. The venture will manufacture and sell solar equipment in the country. GCL will hold a 40 per cent stake in the JV, while the remaining will be held by SoftBank. Under the agreement, GCL will be responsible for providing the technology and SoftBank will assist in obtaining land and regulatory approvals. The venture plans to achieve a production capacity of 4 GW, which will be implemented in two phases.

PFC provides Rs 2,900 million loan for the largest operational WtE project

The Power Finance Corporation (PFC) has provided a loan of Rs 2,900 million for the 24 MW Bawana waste-to-energy (WtE) project in Delhi, being operated by the Ramky Group. The project, which was commissioned in 2017, is the largest operational WtE plant in India. It is a part of a 2,000 tonnes per day integrated municipal solid waste management system and handles about 20 per cent of Delhi’s municipal solid waste. The funding marks PFC’s entry into the WtE segment.

EESL’s subsidiary acquires the UK’s Edina Power Services for $76 million

Energy Efficiency Services Limited’s subsidiary, EESL EnergyPro Assets Limited, has acquired the UK-based power generation solutions provider Edina Power Services, for $76 million. The acquisition will allow EESL to expand its footprint in the UK’s $8.4 billion market for energy efficiency products and services. The deal will also help the company improve its offerings in the energy service contract model for combined heat and power technology.

JSPL raises Rs 12 billion through a QIP

Jindal Steel and Power Limited (JSPL) has raised Rs 12 billion through a qualified institutional placement (QIP). The company has issued about 51.5 million equity shares of a face value of Re 1 each at a price of Rs 233 per share, including a premium of Rs 232. The company had initially proposed a QIP issue of Rs 9 billion but it increased the issue size to Rs 12 billion, taking into account the positive response of domestic and international investors.

Central PSUs plan a JV for buying out stressed assets

NTPC, PFC and the Rural Electrification Corporation (REC) are reportedly in talks to create a JV to buy out stressed assets in the power sector. The proposed JV may witness equity participation from Power Grid Corporation of India Limited and Bharat Heavy Electricals Limited. It will bid for assets that go through resolution under the Insolvency and Bankruptcy Code. The venture will be finalised after considering the Reserve Bank of India’s guidelines and legal issues.

 NCLT allows insolvency proceedings against Essar Power Jharkhand

Essar Power Jharkhand Limited has been admitted for insolvency proceedings by the National Company Law Tribunal. The decision has been taken in view of a petition filed by ICICI Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC) 2016, on account of its failure to recover a debt of Rs 30.33 billion from the company. According to ICICI Bank, the total default amount (including interest and other charges) stood at Rs 34.68 billion as of December 15, 2017.

Brazil announces $960 million credit line for solar projects (Brazil)

Brazil’s Ministry of National Integration has announced the creation of a $960.9 million credit line to finance distributed and centralised solar power generation projects in the urban and rural areas of the country. The annual interest rate for the credit has been fixed at 6.24 per cent for both the north and north-eastern regions. However, the repayment period for the north region is 36 months with up to two grace periods, while for the north-eastern region, it is 12 years with four grace periods. With this measure, the government expects to install at least 10,000 solar systems during 2018.

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