Financial Briefs

India and overseas

NTPC raises Rs 40 billion through private placement (India)

NTPC has raised Rs 40 billion via bonds issued on a private placement basis. Bids worth Rs 125.2 billion were received against the issue size of Rs 5 billion with a greenshoe option to retain oversubscription up to Rs 35 billion. The Series-67 bond issue pulled down the annualised yield for 10-year bonds to 8.3 per cent.

Powergrid’s board approves investments worth Rs 3.79 billion

Power Grid Corporation of India Limited’s (Powergrid) board has given its approval for investments worth Rs 3.79 billion for various projects. These include the implementation of a 500 MVAr thyristor controlled reactor at the Kurukshetra 400 kV bus at an estimated cost of Rs 2.67 billion. The board has also given investment approval for the Reliable Communication Scheme under the Central Sector for Western Region, at an estimated cost of Rs 1.12 billion. The two projects are to be commissioned within 30 months and 36 months respectively from the date of the approval.

Adani Group secures projects under SAMADHAN scheme

The Adani Group has reportedly secured three out of the seven projects under the Scheme of Asset Management and Debt Change Structure (SAMADHAN) scheme. These projects are Coastal Energen Private Limited (debt of Rs 61.32 billion), KSK Mahanadi Power Limited (Rs 171.94 billion) and GMR Chhattisgarh Energy Limited (Rs 81.74 billion). Regarding four other projects, the lenders for RattanIndia Power Limited will take a haircut of around 50 per cent of the company’s outstanding loans of Rs 71.08 billion. The Rs 199.58 billion debt held by Jaiprakash Power Ventures Limited will be recast without a change in its existing promoter. Meanwhile, the sale of SKS Power and Prayagraj Power has already been approved. In a separate development, Adani Power Limited (APL) has sought a loan worth Rs 100 billion from the Rural Electrification Corporation (REC) and the Power Finance Corporation (PFC) for its 1,600 MW Godda coal-based power project in Jharkhand. REC and PFC are likely to approve Rs 50 billion each, making this the largest debt financing for a greenfield thermal power project (TPP). The TPP will be funded on a debt-equity ratio of 80:20 and has an estimated cost of Rs 140 billion.

EESL raises a Rs 5 billion loan for its flagship projects

Energy Efficiency Services Limited (EESL) has raised its first long-term rupee loan for Rs 5 billion. The loan, issued by Punjab National Bank (PNB), will be utilised for funding the capital expenditure of EESL’s flagship programmes including the street lighting national programme, the smart meter national programme, solar substations and the e-mobility project. The seven-year loan has a two-year moratorium, with the interest rate being linked to PNB’s marginal cost of fund-based lending rate (MCLR), currently at 8.45 per cent per annum.

CCI approves RPV’s acquisition in PPGCL

The Competition Commission of India (CCI) has approved Renascent Power Ventures’ (RPV) acquisition of 75 per cent stake in Prayagraj Power Generation Company Limited (PPGCL). It has approved the acquisition of equity shares and optionally convertible redeemable preference shares of PPGCL by Renascent Power. Renascent Power Ventures had signed a share purchase agreement with a consortium of lenders led by the State Bank of India (SBI) to acquire 75.01 per cent stake in PPGCL, which owns and operates a 1,980 MW supercritical power plant in Uttar Pradesh.

Lenders reject JSW’s bid to acquire Monnet Power

The lenders to Monnet Power Company Limited have rejected the lone bid from JSW Energy Limited to acquire the company due to poor terms of the offer. As per the bid, JSW Energy proposed to make an upfront payment of Rs 500 million and Rs 4.5 billion over a period of 10 years, which was not accepted by the lenders. As a result, Monnet Power Company Limited will head for liquidation.

China’s State Grid to invest $5.66 billion in five pumped hydro storage plants (China)

China’s State Grid Corp will invest $5.66 billion to build five pumped hydro storage plants with a combined capacity of 6 GW across the country. The plants will be located in the provinces of Jilin, Hebei, Shandong and Zhejiang and the far west region of Xinjiang, and are expected to be launched by 2026. State Grid plans to launch at least 40 GW of pumped hydro storage plants by 2020.

Celeo Redes Brasil acquires two concessionaires of Grupo Isolux Corsan (Brazil)

CeleoRedesBrasil, which is partly owned by Spain’s Elecnor Group, has completed the acquisition of GrupoIsoluxCorsan S.A.’s stake in two transmission line concessionaires in Brazil for Euro 46.65 million. The transaction involves the sale by IsoluxEnergía e Participações S.A. of its 33.3 per cent and 100 per cent stakes in the transmission concessionaires, JaurúTransmissora de Energía S.A. (JTE) and CachoeiraPaulistaTransmissora de Energía S.A. (CPTE) respectively. JTE holds a concession for five transmission lines in the states of MatoGrosso and Rondonia, covering 940 km. The assets of the CPTE concession are in the state of São Paulo, and include a 500 kV line covering 181 km between TijucoPreto and CachoeiraPaulista II substations. This acquisition strengthens the position of the Elecnor Group in Brazil, where it operates over 4,130 km of transmission lines and has 5,275 MVA of transformation capacity in nine Brazilian states.

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