Financial Briefs: India and overseas

India and overseas

NHPC signs agreement with creditors for reviving Lanco Teesta project (India)

NHPC Limited has signed an agreement with the committee of creditors for availing of a loan of Rs 45 billion from the Power Finance Corporation (PFC) and REC Limited for reviving the 500 MW Lanco Teesta project in Sikkim. With this, NHPC has become the first public sector undertaking to take over a stressed asset through a resolution process in the National Company Law Tribunal. NHPC will pay Rs 9.07 billion for the Teesta project. According to the summary of claims from creditors, 35 per cent of the dues will be settled. The financial creditors will get Rs 8.77 billion out of the Rs 24.99 billion claims made by them. Another Rs 110 million will go to the operational creditors and Rs 180 million to workmen and employees. The project will be implemented at an estimated project cost of Rs 57.48 billion, which includes the bid amount. About 30 per cent of this cost, amounting to Rs 17.24 billion (at July 2018 prices), will be put in as equity by NHPC and the remaining Rs 40.24 billion would be debt. The company has also put in an expression of interest for Jal Power, another insolvent hydropower unit, with a capacity of 120 MW, in Sikkim.

Powergrid plans to set up InvIT by 2020

Power Grid Corporation of India Limited (Powergrid) is planning to set up an infrastructure investment trust (InvIT) by March 2020 to unlock value in some of its transmission assets. It secured in-principle board approval on October 1, 2019 to set up the InvIT. It is looking at the monetisation of transmission assets worth Rs 100 billion, which will help Powergrid reduce its debt while increasing the dividend payout to shareholders. The nature of the InvIT is yet to be decided.

ATL completes the acquisition of BKTL

Adani Transmission Limited (ATL) has signed a share purchase agreement and completed the acquisition of Bikaner-Khetri Transmission Limited, the SPV incorporated by PFC Consulting Limited. ATL had won the project through a tariff-based competitive bidding process and received a letter of intent in July 2019. The project consists of 480 ckt. km of 765 kV lines and associated transmission systems. The project is associated with long-term applications from Rajasthan Solar Energy Zone Part-D.

JPVL receives shareholder approval to issue preference shares

Jaiprakash Power Ventures Limited (JPVL) has received shareholder approval to issue preference shares worth Rs 40 billion to its lenders. The offer includes the issue of 0.01 per cent cumulative compulsory convertible preference shares aggregating Rs 40 billion in one or more tranches on a preferential basis to lenders. It had submitted its proposal for deep restructuring of loan facilities under the Scheme of Assets Management and Debt Change Structure or Samadhan.

Royal Dutch Shell buys stake in Orb Energy

Royal Dutch Shell has acquired a 20 per cent stake in Bengaluru-based solar power equipment supplier Orb Energy Private Limited. Orb Energy’s existing investors include Dutch development bank FMO, Bamboo Capital Partners and Pamiga SA of Luxembourg, Switzerland’s Rianta Capital, and the US-based Acumen Capital Market Funds.

AGEL’s subsidiaries approve issuance of green bonds

Adani Green Energy Limited (AGEL) has announced that its subsidiaries, Adani Renewable Energy Limited, Wardha Solar (Maharashtra) and Kodangal Solar Parks Private Limited, have approved the issuance of dollar-denominated 20-year senior secured green bonds amounting to $362.5 million. The proceeds will be used to repay their respective foreign currency loans and rupee borrowings as well as for capital expenditure and other project-related liabilities.

IL&FS sells off its wind energy assets to Orix Corporation

Infrastructure Leasing & Financial Services Limited (IL&FS) has completed the sale of its wind energy assets to Japan-based Orix Corporation for Rs 49 billion. IL&FS has sold 51 per cent stake in seven SPVs under its wind energy assets portfolio to Orix Corporation. The seven operating wind power SPVs, with 874 MW of generation capacity, were held under IL&FS Wind Energy Limited, a subsidiary of IL&FS. The transaction has resolved debt of over Rs 43 billion.

JSW Group repays loans of Rs 12 billion by releasing pledged shares of JSW Steel and JSW Energy

The JSW Group has repaid Rs 12 billion worth of loans raised by pledging shares of JSW Steel and JSW Energy.  Following the repayment, the pledged shares of both the companies, worth Rs 25 billion, have been released by the lenders. Around 70.1 million shares of JSW Steel, accounting for 2.9 per cent of the company’s paid-up capital, have been released. The release of 118.8 million JSW Energy shares accounts for 7.24 per cent of the company’s paid-up capital.

World Bank approves $3 billion loan for Nigeria’s power sector (Nigeria)

The World Bank has approved a $3 billion loan for Nigeria to expand its electricity transmission and distribution infrastructure. The loan will be released in four tranches of $750 million each and could be expanded to $4 billion. Nigerian authorities will visit the World Bank in April 2020 to receive the first instalment of the loan.