Financial Briefs

India and overseas

NTPC signs Rs 50 billion term loan agreement with SBI (India)

On February 11, 2019, NTPC Limited signed a term loan agreement for Rs 50 billion with the State Bank of India (SBI). The loan facility has been extended at an interest rate linked to the bank’s three-month marginal cost of funds-based lending rate (MCLR). This loan has a door-to-door tenor of 15 years and will be utilised to part finance NTPC’s capital expenditure.

Competition Commission of India approves PFC’s plan to buy stake in REC

The Competition Commission of India (CCI) has approved the Power Finance Corporation’s (PFC) plan to buy  the central government’s 52.63 per cent stake in the Rural Electrification Corporation  (REC). The government is expected to receive Rs 150 billion from this stake sale. Earlier, in December 2018, the Cabinet Committee on Economic Affairs (CCEA) and the PFC board had given in-principle approval for the strategic sale. PFC is likely to close the deal by March 31, 2019. It is planning to fund the transaction through debt from the market and/or payments received on loan assets from borrowers, including interest.

Adani Transmission acquires KEC Bikaner Sikar for Rs 2.27 billion

Adani Transmission Limited has announced the closure of its acquisition of KEC International Limited’s 100 per cent stake in KEC Bikaner Sikar Transmission Private Limited at an enterprise value of Rs 2.27 billion. With this acquisition, Adani Transmission will have about 13,450 ckt. km of power transmission lines. The KEC Bikaner Sikar Transmission project comprises a 400 kV D/C transmission line between Bikaner and Sikar in Rajasthan aggregating 344 ckt. km. The project was awarded through a competitive bidding process and was commissioned in December 2017.

EESL garners revenues of Rs 30 billion from the UJALA programme

Energy Efficiency Services Limited (EESL) has garnered nearly Rs 30 billion in revenue from the Unnat Jyoti by Affordable LEDs for All (UJALA) programme in the past four years. The company has distributed nearly 325 million bulbs at Rs 70-Rs 180 per bulb to consumers. Under the scheme, about 95 per cent of consumers opted for upfront payment while 5 per cent went for the instalment scheme.

APPFC in the process of raising Rs 50 billion through bonds

The Andhra Pradesh Power Finance Corporation (APPFC) is in the process of raising Rs 50 billion through bonds. The company has decided to raise funds by issuing redeemable non-convertible power bonds for Rs 20 billion with a greenshoe option of Rs 30 billion through a private placement, with an unconditional and irrevocable guarantee by the state.

GIC Holdings and ADIA to invest $550 million in Greenko

GIC Holdings Pte Limited of Singapore and the Abu Dhabi Investment Authority (ADIA) will invest $550 million of fresh primary capital in renewable energy firm Greenko. The funds will be used primarily for Greenko’s new initiatives such as building another 5 GW of integrated renewables for round-the-clock supply through energy storage contracts. GIC holds a 60 per cent stake in Greenko. Both GIC and ADIA have invested heavily in Greenko in recent years. Last year, Greenko had raised $447 million from GIC and ADIA.

ADB invests $20 million in AC Energy’s maiden climate bonds (Philippines)

The Asian Development Bank (ADB) has invested $20 million in the maiden climate bond issuance of AC Energy, a subsidiary of Philippine conglomerate Ayala Corporation. ADB is an anchor investor in the 10-year tranche, contributing to a total issue volume of $410 million. The proceeds of the bonds are expected to be used to finance renewable energy projects in the Asia-Pacific region, including Vietnam, the Philippines and Indonesia.

ReNew Power Secures Additional OPIC Debt Funding of up to $350 Million

Renew Power has announced securing fresh debt financing of up to $350 million from the Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution. The funds will be used to support construction of new wind and solar power plants in India. This is OPIC’s second loan grant to ReNew Power, after $ 250 million granted earlier in March 2016. As of February 2019, ReNew had a total capacity of over 6.5 GW of wind and solar power assets across the country, including commissioned and under development projects.

JERA and TEPCO Power Grid to invest $32.68 billion in Zenobe Energy (UK)

Japanese companies JERA and Tokyo Electric Power Company Holdings (TEPCO Power Grid) will invest $32.68 billion in Zenobe Energy Limited, a battery storage company based in the UK. Zenobe Energy has a portfolio of batteries with a capacity of 73 MW. The investment will enable JERA to increase its knowledge of how batteries can respond to supply and demand variances caused by the changing generation mix and also improve the operational efficiency of its domestic thermal power plants by installing battery storage. TEPCO Power Grid will gain access to solutions for its ancillary services.

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