Financial Briefs

India and overseas

Greenko Group to acquire Orange Renewables for $1.02 billion

The Greenko Group has agreed to acquire Orange Renewables from Singapore’s AT Capital Group for about $1.02 billion. The enterprise value includes debt aggregating $680 million, which will be taken over by Greenko. Through the acquisition, Greenko will take over around 907 MW of Orange Renewables’ operational solar and wind projects, and over 500 MW of assets under construction. The acquisition is the third largest renewable energy deal in the country after ReNew Power Ventures Private Limited’s acquisition of Ostro Energy and Tata Power Renewable Energy Limited’s acquisition of Welspun Renewables Energy Private Limited. In a separate development, Greenko Energy Holdings Limited has raised around $447 million in primary equity funding from an affiliate of GIC Holdings Pte Limited and an entity that is wholly owned by the Abu Dhabi Investment Authority.

Azure Power raises $135 million through debt financing

Azure Power Global Limited has received a debt funding of $135 million from the International Finance Corporation (IFC) and three European lenders for the expansion of its solar rooftop portfolio. IFC will provide of $45 million, whereas the remaining amount will be contributed by the Dutch development bank FMO, the French development institution Proparco, and the Austrian development bank OeEB. Azure Power plans to use the funds to finance around 200 MW of rooftop solar projects across India.

SBI-led consortium to sell stake in Coastal Energen

Coastal Energen has been put up for sale by a consortium of lenders led by the State Bank of India (SBI). The company owns a 1,200 MW coal-based power plant in Tamil Nadu and had obtained credit facilities from lenders for the same. As of December 30, 2016, the company had a debt of over Rs 60 billion and went through strategic debt restructuring. SBI Capital Markets has been appointed by SBI on behalf of the consortium to identify an investor in accordance with the Reserve Bank of India’s new norms for the acquisition of a 51 per cent share in the company, which is currently held by the lenders, subsequent to the conversion of debt into equity. SBI is the key lender, with a share of 18.54 per cent in the company. Other lenders include Punjab National Bank, Central Bank of India, Indian Bank and Indian Overseas Bank.

JSW Energy and Adani Power submit EoIs to acquire Monnet Power

JSW Energy Limited and Adani Power Limited have submitted separate expressions of interest (EoIs) for acquiring Monnet Power Limited, which was admitted for insolvency proceedings. Monnet Power, set up in 2007, operates a 1,050 MW coal-based project in Odisha, which was stranded after captive mining licences were cancelled by the Supreme Court in 2014. Monnet Power owes Rs 58.92 billion to banks and another Rs 3.59 billion to operational creditors.

JPLreceives EoIs from four bidders

Jhabua Power Limited (JPL), a subsidiary of Avantha Power and Infrastructure Limited, has received EoIs from Adani Power Limited, Resurgent Power Ventures Pte Limited, Edelweiss Asset Reconstruction Company and Phoenix Asset Reconstruction Company. JPL was put up for auction in May this year. The deadline for binding offers will end in the first week of August 2018. JPL has an operational capacity of 600 MW in Madhya Pradesh, while another 660 MW is under construction. JPL owes close to Rs 43 billion to various lenders. The plant has long-term power purchase agreements for 71 per cent of its total generation, with Madhya Pradesh buying 35 per cent and Kerala buying 36 per cent, and has full fuel linkage with Coal India Limited.

Essel Infraprojects shortlists four firms for sale of its power transmission projects

Tata Power Limited, Sterlite Power Transmission Limited, CLP India Private Limited and Edelweiss Financial Services have emerged as the top bidders for acquiring $1 billion worth of transmission projects of Essel Infraprojects Limited. Essel Infraprojects has shortlisted these firms for further negotiations as it seeks to exit the transmission business. Essel has four transmission projects in its portfolio acquired through a competitive bidding process, of which two are commissioned (Darbhanga-Motihari Transmission Company Limited and the NRSS XXXI (B) Transmission Limited), and two are slated for commissioning by 2019 (NRSS XXXVI Transmission Limited and Warora-Kurnool Transmission Limited). Essel is separately in talks with the Greenko Group for the sale of its solar business for another $1 billion.

AfDB to provide loans of $49.5 million for a 35 MW geothermal power plant (Kenya)

The African Development Bank (AfDB) has approved loans aggregating $49.5 million to Quantum Power East Africa GT Menengai Limited to support the development of a 35 MW geothermal power plant in Kenya. The funding consists of a senior loan of $29.5 million and a $20 million concessional loan, which will be provided under the clean technology fund programme of the Climate Investment Funds.

World Bank approves $125 million funding for solar power plants in Morocco (Morocco)

The World Bank has agreed to provide $125 million for the construction of the Noor-Midelt I and II solar power plants in Morocco. The plants will be a combination of concentrating solar power and photovoltaic technologies and will have an aggregate capacity of up to 800 MW. The fund includes $25 million of financing, which will be provided from the Clean Technology Fund.


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