Financial Briefs: India and overseas

India and overseas

REC raises $500 million by issuing unsecured notes

REC Limited has raised $500 million by issuing unsecured notes. The notes will mature on December 12, 2024 and all principal and interest payments will be made in US dollars. The notes represent direct, unconditional and unsecured obligations of the issuer and will rank pari passu among themselves and all other unsecured obligations of the issuer. The notes will be listed on the London Stock Exchange’s International Securities Market, the Singapore Exchange, The India International Exchange  and NSE IFSC.

NTPC signs agreement for Rs 50 billion with SBI

NTPC Limited has 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 three-month MCLR (marginal cost of funds-based lending rate) of the bank and has a door-to-door tenor of 15 years. The loan will be utilised to part finance the capital expenditure of NTPC Limited.

AEML to sell 25.1 per cent stake to QIA

Adani Transmission Limited (ATL), Adani Electricity Mumbai Limited (AEML) and a subsidiary of the Qatar Investment Authority (QIA) have signed definitive agreements for the sale of a 25.1 per cent stake in AEML to QIA and for a shareholder subordinated debt investment by QIA in AEML. The total investment by QIA will be about Rs 32 billion (or $450 million). As part of the transaction, ATL and QIA have agreed that over 30 per cent of the electricity supplied by AEML will be sourced from solar and wind power plants by 2023. In addition, ATL and QIA have agreed on a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low-carbon economy.

Renascent Power Ventures Private Limited acquires 75 per cent stake in PPGCL

Renascent Power Ventures Private Limited has completed the acquisition of a 75 per cent stake in Prayagraj Power Generation Company Limited (PPGCL), a subsidiary of Jaiprakash Power Ventures Limited. Renascent Power will also take  over the company’s Rs 60 billion debt. PPGCL owns and operates a 1,980 MW coal-based power plant at Prayagraj, in Uttar Pradesh.

KPTL sells entire stake in KSPTL to CLP India

Kalpataru Power Transmission Limited (KPTL) has sold its entire stake in Kalpataru Satpura Transco Private Limited (KSPTL) to CLP India Private Limited, post obtaining the requisite regulatory and other approvals. KPTL had earlier entered into definitive agreements with CLP India Private Limited to sell its stake in three subsidiaries – KSTPL, Alipurduar Transmission Limited  and Kohima – Mariani Transmission Limited – at approximately Rs 32 billion.

Sterlite Power acquires SPV for WRSS-21, Part B

Sterlite Power Transmission Limited has acquired interstate Lakadia–Vadodara Transmission Project Limited, a special purpose vehicle (SPV) owned by PFC Consulting Limited set up for the implementation of the Western Region Strengthening Scheme-21 (WRSS-21) (Part B). The latter aims to help relieve the over loadings observed in the Gujarat intra-state system due to renewable energy injections into the Bhuj pooling station.

Avaada Energy receives equity investment of Rs 1.07 billion from PROPARCO

PROPARCO, a French development financial institution, has made an equity investment of Rs 1.07 billion ($15 million) in Avaada Energy Private Limited. Avaada has 405 MW of large-scale solar projects in operation in India and about 1 GW of projects under development. PROPARCO had earlier invested in renewable energy project developer Azure Power.

IREDA to set up $100 million green window for renewable energy projects

The Indian Renewable Energy Development Agency (IREDA) plans to set up a $100 million green window for financing renewable energy projects. A green window is a financing model designed to leverage limited government funds for attracting private capital to achieve clean energy goals. IREDA plans to allocate $20 million for the proposed green window and leverage about $80 million from other agencies to establish the facility.

NCLT orders liquidation of Lanco Babandh Power Limited

The National Company Law Tribunal (NCLT) has ordered the liquidation of Lanco Babandh Power Limited. This would result in losses to the lenders as about Rs 80 billion is overdue from the company. The bankruptcy court has removed the resolution professional for the company and appointed a liquidator to sell off the assets. The company owns two thermal units of 660 MW capacity each in Dhenkanal, Odisha.

ADB approves $250 million loan for energy efficiency investments in India

The Asian Development Bank (ADB) has approved a $250 million loan as part of an assistance package to Energy Efficiency Services Limited to expand energy efficiency investments in India. The project will adopt proven energy efficient technologies to reduce electricity network losses as well as greenhouse gas emissions.

ADB approves loan for power transmission expansion in Bangladesh (Bangladesh)

ADB has approved a $300 million loan for the expansion of power transmission lines in Greater Dhaka and the western zone of Bangladesh. The Asian Infrastructure Investment Bank and China’s Poverty Reduction and Regional Cooperation Fund  are considering co-financing the project via a $200 million loan and a $0.75 million grant, respectively.