Financial Briefs: India and overseas

India and overseas

ADB signs an agreement with GoI for a $250 million loan

The Asian Development Bank (ADB) and the Government of India (GoI) have signed a $250 million loan agreement for Energy Efficiency Services Limited (EESL) to expand energy efficiency investments in India, which will benefit agricultural, residential and institutional consumers. Another $46 million financing will be provided from the Clean Technology Fund that will be administered by ADB.

Essel Group signs agreement to sell 480 MW under-construction solar energy portfolio

The Essel Group has signed an agreement to sell 480 MW under-construction solar energy assets to Adani Green Energy Limited. Earlier, the company had sold 205 MW of its operational solar energy portfolio to the Adani Group for Rs 13 billion in August 2019. The sale of solar energy assets is part of the Essel Group’s plan to reduce debt and repay lenders.

SBI signs $277 million loan agreement with KfW

The State Bank of India (SBI) has signed a loan agreement with German development bank KfW for $277 million to establish an energy efficient housing programme in India. The programme will be a part of the Indo-German Development Cooperation programme, which is guided by the 2030 Agenda for Sustainable Development. The programme will contribute to India’s initiatives in the energy conservation space in the residential building sector and in the reduction of greenhouse gas emissions.

RattanIndia resolves debt through a one-time settlement

RattanIndia Power Limited has closed a one-time settlement scheme for debt resolution with its consortium of 12 lenders led by the Power Finance Corporation and SBI. These existing lenders have assigned the existing principal debt of Rs 65.74 billion to a set of new investors and lenders led by Goldman Sachs and Varde Partners (through Aditya Birla Asset Reconstruction Company) for Rs 40.5 billion. This is the first successful scheme to have been closed under the Reserve Bank of India’s Prudential Framework for Resolution of Stressed Assets and the largest in terms of size outside the National Company Law Tribunal framework, attracting global investors without any change in the management.

JSW Energy signs agreement with JPVL to restructure Rs 7.52 billion of the latter’s debt

JSW Energy Limited has entered into an agreement with Jaiprakash Power Ventures Limited (JPVL) to restructure the principal outstanding amount of Rs 7.52 billion owed by  the latter. Under the agreement, an amount of Rs 3.52 billion will be converted into equity shares of JPVL at a par value of Rs 10 each. Of the remaining outstanding principal amount of Rs 4 billion, Rs 2.8 billion will be written off and Rs 1.2 billion will continue as debt to be paid by JPVL to JSW Energy.

PFS receives Rs 1.45 billion from the resolution of PPGCL’s stressed account

PTC India Financial Services (PFS) has received Rs 1.45 billion as a part of the resolution of its stressed loan account of Prayagraj Power Generation Company Limited (PPGCL). PPGCL owns and operates a 1,980 MW coal-based power project in Uttar Pradesh, which had become a non-performing asset due to financial and operational stress. The project has now been acquired by Renascent Power Ventures Private Limited. PFS also expects to receive Rs 70 million as per the agreement. This development will augment PFS’s liquidity position and reduce its stressed assets portfolio.

AIIB approves a $65 million loan for Hero Futures Energies’ 250 MW solar project

The Asian Infrastructure Investment Bank (AIIB) has approved a $65 million loan for Hero Futures Energies’ 250 MW solar power project in Jodhpur, Rajasthan. The company will develop the project through its special purpose vehicle, Clean Solar Power (Jodhpur) Private Limited. The project is expected to generate 616 MWh by 2022.

RInfra wins arbitration award of Rs 12.5 billion against DVC

Reliance Infrastructure Limited (RInfra) has won an arbitration award of Rs 12.5 billion against the Damodar Valley Corporation (DVC). RInfra was the electrical and civil contractor of DVC’s 1,200 MW Raghunathpur coal-based power project in West Bengal with a contract value of Rs 37.5 billion. During execution, RInfra faced various impediments and, therefore, raised claims on DVC in respect of the delays and hindrances faced by it.

Yes Bank acquires 30 per cent shareholding in Rosa Power

Yes Bank has acquired 30 per cent shareholding in Reliance Power Limited’s subsidiary, Rosa Power Supply Company, on the invocation of pledged shares. Rosa Power operates a 1,200 MW coal-based power plant in Shahjahanpur, Uttar Pradesh. Yes Bank acquired around 127 million shares in Rosa Power on the invocation of the pledged shares, following the default/breach of the terms of credit facilities. Reliance Power defaulted on a debt repayment of Rs 6.85 billion in the quarter ended December 2019.

KEPCO plans to invest over $1 billion in Pakistan’s power sector (Pakistan)

The Korea Hydro and Nuclear Power, a subsidiary of Korea Electric Power Corporation (KEPCO), will invest over $1 billion in the power sector of Khyber Pakhtunkhwa, Pakistan. The Khyber Pakhtunkhwa government and the Korean company have partnered to invest in a 496 MW power project in Kohistan. The Khyber Pakhtunkhwa government will be a 26 per cent shareholder in the project.