Financial Briefs

India and overseas

NTPC raises $450 million under MTN programme (India)

NTPC Limited has raised $450 million through a five-year bond offering in the international market under its $6 billion medium-term note (MTN) programme. This issuance is NTPC’s tenth offering under the programme, which was set up in 2006, taking the cumulative amount raised under the MTN programme to $4.3 billion. In a separate development, NTPC has signed a term loan agreement worth Rs 20 billion with Canara Bank. The interest rate of the loan facility is linked to the three-month MCLR of the bank, with a door-to-door tenor of 15 years. The loan will be utilised to part finance NTPC’s capital expenditure.

PFC sets borrowing limit at Rs 810 billion for 2019-20

Power Finance Corporation’s (PFC) board has decided to set the company’s overall borrowing limit at Rs 810 billion for 2019-20. Of this, Rs 450 billion will be raised through long-term borrowings such as term loans and public or private placements of long-term taxable/tax-free bonds. It also plans to raise Rs 110 billion through long-term foreign currency borrowings, Rs 70 billion through short-term borrowings and Rs 180 billion through commercial paper during 2019-20. The short-term funds raised and repaid during the year will be excluded from the borrowing limit of Rs 810 billion.

ABB India’s board approves demerger of its power grids business

ABB India’s board has approved the demerger of its power grids business to ABB Power Products and Systems India Limited (APPSIL). After the demerger, the minority shareholders will be issued one share of APPSIL (which will be listed on the stock exchanges) for every five shares held in ABB India. The demerger is expected to assist the current power grids division to independently pursue the business excellence built over a long period in the power infrastructure space.

BEL files DRHP for its IPO with SEBI

Bajaj Energy Limited (BEL) has filed the draft red herring prospectus (DRHP) for its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) to raise Rs 54.5 billion. The offer comprises a fresh issue of shares of up to Rs 51.5 billion by BEL and an offer for sale of equity shares by Bajaj Power Ventures aggregating Rs 3 billion. BEL intends to acquire Lalitpur Power Generation Company Limited’s 1,980 MW TPP in Uttar Pradesh from the proceeds of the offer.

Unitech sells transmission business to Sterling and Wilson

Unitech Limited has sold its power transmission business, Unitech Power Transmission Limited (UPTL), to the Shapoorji-Pallonji Group-promoted Sterling and Wilson Private Limited for an undisclosed amount. Unitech has entered into a share purchase agreement with Sterling and Wilson to sell the entire issued and paid-up share capital of UPTL. After the completion of the transaction, UPTL will become a wholly owned subsidiary of Sterling and Wilson.

Suzlon Energy sells two subsidiaries to CLP Wind Farms (India) Limited

Suzlon Energy Limited has completed the sale of two of its subsidiaries, SE Solar and Gale Solar Farms, to CLP Wind Farms (India) Limited for Rs 990.9 million. While it sold the balance stake in SE Solar for Rs 765.5 million, the balance stake in Gale Solar Farms was sold for Rs 225.4 million. SE Solar is a special purpose vehicle (SPV) set up by Suzlon with CLP India for the 100 MW Veltoor Solar project in Telangana. Gale Solar Farms is another SPV set up by Suzlon with CLP India for a 50 MW project at Dhule in Maharashtra.

KPTL signs definitive agreement to acquire 85 per cent stake in LMG

Kalpataru Power Transmission Limited (KPTL) has signed a definitive agreement to acquire 85 per cent stake in Swedish firm Linjemontage i Grastorp AB (LMG) for an enterprise value of $24 million (Rs 1.65 billion). Grastrop-headquartered LMG specialises in power supply solutions and services for electricity networks in the voltage range of 0.4-400 kV.

Shapoorji Pallonji Infrastructure Capital sells 194 MW solar portfolio to Sprng Energy

Shapoorji Pallonji Infrastructure Capital has completed the sale of 194 MW of its operating solar portfolio to Sprng Energy, the renewable energy arm of investment firm Actis. The divestment has been carried out to redeploy capital for the development of new solar projects. The acquisition is in line with Actis’s commitment to build over 2 GW of renewable energy projects in India.

PGCB gets $120 million loan approval from AIIB (Bangladesh)

State-owned Power Grid Company of Bangladesh (PGCB) has received approval for a $120 million loan from Asian Infrastructure Investment Bank (AIIB) for the implementation of the Bangladesh Power System Upgrade and Expansion Project. The $176.6 million project is one of four power projects being funded by AIIB in the country.

Eskom receives $180 million loan for grid connection project (South Africa)

The New Development Bank (NDB) has signed a loan agreement worth $180 million with South African state-owned power utility Eskom Holdings SOC Limited for the implementation of the Renewable Energy Integration and Transmission Augmentation Project. The NDB’s Project Finance Facility will be utilised for the development of grid connection infrastructure. The project will transmit 670 MW of power into Eskom’s grid and increase electricity supply to the targeted areas.


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