Financial Briefs

India and overseas

CCEA approves investment proposals for four projects (India)

The Cabinet Committee on Economic Affairs (CCEA) has sanctioned investment proposals for four power projects. The  624 MW Kiru hydropower project will entail an estimated cost of Rs 42.88 billion and will be executed by the Chenab Valley Power Project, a joint venture company of NHPC Limited, the Jammu and Kashmir State Power Development Corporation, and PTC India. For the Teesta Stage VI project in Sikkim, the CCEA has approved a Rs 57.48 billion investment proposal. (The project was earlier being developed by Lanco Teesta Hydro Power Limited, promoted by the Lanco Group, and was bought by NHPC.) The CCEA has also approved a proposal by THDC Limited to set up a 1,320 MW thermal plant at Khurja in Uttar Pradesh for about Rs 110 billion, and an investment of Rs 104 billion for a 1,320 MW thermal power project (TPP) at Buxar in Bihar, to be set up by SJVN Thermal, a wholly owned subsidiary of SJVN Limited.

ReNew Power completes green bond issue worth $375 million

ReNew Power has completed a green bond issue of $375 million. The five-year non-call two notes were offered at a yield of 6.67 per cent per annum. The capital raised through the green bond issue will be utilised as capital expenditure for green projects, and for refinancing outstanding external commercial borrowings. Subscription opened on March 5, 2019 and closed on the same day. The bond offer has been rated BB by Fitch Ratings.

NHPC issues bonds on a private placement basis

NHPC Limited has issued secured, redeemable, non-cumulative, non-convertible and taxable X-Series bonds on a private placement basis with an issue size of Rs 15 billion. The bonds will have a tenor of 10 years from the deemed date of allotment, including a moratorium period of three years, and a coupon rate of 8.65 per cent per annum. The company has proposed to list the issue on the wholesale debt market of the National Stock Exchange (NSE). In a separate development, NHPC has paid an interim dividend of Rs 5.26 billion to the Government of India for 2018-19.

ArcelorMittal offers Rs 48 billion for Essar Power’s Mahan TPP

ArcelorMittal S.A. has offered Rs 48 billion for Essar Power’s 1,200 MW Mahan TPP in Madhya Pradesh. This offer is about 37 per cent higher than the Rs 37 billion resolution offer made earlier by the Essar Group under the one-time settlement scheme (OTS). The lenders to the stressed project include ICICI Bank, the Power Finance Corporation, Punjab National Bank, and Rural Electrification Corporation Limited. The total debt of the power plant stands at Rs 75 billion.

EoIs invited for Lanco’s solar power project in Gujarat

IDBI Bank’s process adviser Deloitte Touche Tohmatsu India has invited expressions of interest (EoIs) for the sale of a 30 MW solar power project in Patan, Gujarat, owned and operated by Lanco Solar Gujarat Private Limited (LSGPL). The plant’s total debt outstanding  stood at Rs 3.46 billion as of October 8, 2018. IDBI Bank is the only lender to the project. LSGPL is a fully owned subsidiary of Lanco Infratech, which is being liquidated through the corporate insolvency resolution process.

Siemens Financial acquires 46 per cent stake in the Greenko Group

Siemens AG’s financing arm, Siemens Financial Services (SFS) has signed a definitive agreement with the Greenko Group to acquire 46 per cent stake in its 200 MW Poovani wind power project.  The equity investment marks SFS’s first investment in a wind farm in Asia. The wind power project is backed by the Solar Energy Corporation of India (SECI) and involves the installation of 100 units of Siemens Gamesa Renewable Energy’s SG 2.0-114 wind turbines in Tamil Nadu.

GCF approves $299.2 million for electrification and renewable expansion (Africa)

The Green Climate Fund (GCF) has approved funds of approximately $299.2 million to finance programmes for electrification, climate change mitigation and economic development through renewable energy across Africa. The GCF board has approved $29.6 million for the Mali solar rural electrification project with the West African Development Bank, and $100 million for the Embedded Generation Investment Program in South Africa with the Development Bank of Southern Africa, among other projects.

AFD and EU to finance Burkina Faso’s transmission components (Africa)

The Agence Française de Développement (AFD) and the European Union (EU) have signed financing agreements aggregating $51 million (CFA 30 billion) for Burkina Faso’s transmission components in the North Dorsal Project or the North Core Project. Of the total amount, $34 million (CFA 19.7 billion) will be in the form of a loan and $17 million (CFA 9.84 billion) will be in the form of a grant. The project is a 330 kV transmission line starting from Birnin Kebbi (Nigeria) to Ouagadougou (Burkina Faso), passing through Zabori (Niger) and Niamey (Niger) with a T-off to Malanville (Benin).

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