Financial Briefs

India and overseas

NTPC announces voluntary liquidation of Bharat Forge JV (India)

NTPC Limited has announced a voluntary liquidation of its joint venture (JV) with Bharat Forge under the Insolvency and Bankruptcy Code (IBC). BF-NTPC Energy Systems, a 49:51 JV between NTPC and Bharat Forge, was incorporated in June 2008 with the aim of undertaking the manufacturing of the castings, forgings, fittings, etc. required for the power and other industries. However, since no business has commenced, both JV partners have decided to close down the company. In a separate development, NTPC’s board has approved an investment of Rs 97.85 billion for the 1,320 MW Stage III expansion of its Talcher thermal power plant in Angul district of Odisha. The plant currently has four operational units of 60 MW and two units of 110 MW.

Canadian pension fund CDPQ to acquire 40 per cent stake in CLP India

Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) will acquire 40 per cent stake in CLP India Private Limited for Rs 26.4 billion. The Hong Kong-listed parent company, CLP Group, will retain 60 per cent share in CLP India. With the strategic backing and financial support of both shareholders, CLP India aims to pursue faster growth and build a larger, more diversified portfolio with a focus on low-carbon businesses.

ISA assembly approves $9 million annual budget

The first assembly of the International Solar Alliance (ISA) has approved an annual budget of $9 million for 2019 and 2020. It also approved five major programmes focusing on areas such as solar agricultural pump sets, rooftop solar and minigrids, which will be taken up for implementation in member countries. The programme will be funded by the Schneider Foundation, the Tata Foundation and the Philips Foundation. India has put in $16 million into the ISA in a one-time corpus, apart from an annual commitment of $2 million for the first five years. In addition, public sector undertakings (PSUs) like SECI, IREDA, NTPC, Powergrid, REC, PFC, CIL and PFC have contributed $1 million each.

NEEPCO receives bids for Rs 135 million for sale of bonds

North Eastern Electric Power Corporation (NEEPCO) has received bids worth Rs 135 million against the offered amount of Rs 3 billion for the sale of bonds through e-bidding. The bonds have a seven-year term and a coupon rate of  9.25 per cent. In March 2018, the company had raised Rs 3 billion through a 10-year PSU bond issue with a coupon rate of 8.75 per cent and before that, in November 2017, it raised Rs 5 billion through an eight-year bond issuance with a coupon rate of 7.68 per cent.

CGPL completes refinancing of outstanding ECB loans

Coastal Gujarat Power Limited (CGPL) has completed the refinancing of outstanding external commercial borrowings amounting to Rs 55 billion through a mix of rupee-denominated debt instruments and equity funding from the proceeds of the divestment of non-core assets. The refinancing of CGPL’s US dollar loans will help reschedule the cash requirements and reduce the effective interest cost as well as foreign exchange-related volatility for CGPL.

Greenko to buy Skeiron Green Renewables

Greenko Energy Holdings has signed an agreement to buy the wind energy assets of Pune-based Skeiron Green Renewables in Andhra Pradesh and Karnataka. Earlier, the Greenko Group had announced the acquisition of Orange Renewables. The combined deal of Orange and Skeiron will add 1,300 MW of operational and near-completion wind and solar assets to Greenko’s portfolio.

IndiGrid completes investment in PTCL

India Grid Trust (IndiGrid) has completed an investment of Rs 2.32 billion in Patran Transmission Company Limited (PTCL). IndiGrid had signed an agreement in February 2018 to invest in PTCL. This is IndiGrid’s first investment in a third-party asset. The company has set a target of achieving Rs 300 billion of assets under management in the next five years.

RInfra settles outstanding electricity dues to the Maharashtra government

Reliance Infrastructure Limited (RInfra) has paid all its outstanding electricity duties and other taxes, amounting to Rs 26.4 billion, to the Maharashtra government. RInfra has reduced its debt liabilities by Rs 138 billion, by closing a deal to sell its integrated Mumbai power business to Adani Transmission Limited. RInfra is expected to be debt-free by 2019 after the flow of regulatory assets of Rs 50 billion to the company, which are currently under approval.

KOSPO co-funds $101 million wind farm (Jordan)

Korea Southern Power (KOSPO) has signed a financing deal with the World Bank’s International Finance Corporation (IFC) and the South Korea-run Trade Insurance Corporation for a $101 million wind power project in Jordan. The company will reportedly build a 51.75 MW wind farm in Tafila in Amman. Daehan Wind Power Company, a company set up by KOSPO and Daelim Energy, will cover 30 per cent of the project cost while IFC and the Trade Insurance Corporation will finance 70 per cent of the project cost.

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