Financial Briefs

India and overseas

NHPC emerges as the winner of Jal Power’s 120 MW Rangit project

NHPC Limited has emerged as the successful bidder for acquiring Jal Power Corporation Limited’s 120 MW Rangit Stage IV hydroelectric project in Sikkim with a bid of Rs 1.65 billion. Jal Power is undergoing insolvency proceedings at the National Company Law Tribunal. The bids for selecting the successful resolution applicant were invited by the committee of creditors in October 2019. NHPC expects to complete the project in three-and-a-half years after receiving approval from the Cabinet Committee of Economic Affairs.

NTPC raises Japanese yen loan worth $750 million

NTPC Limited has raised a syndicated Japanese yen loan worth $750 million, the largest ever by any Asian corporate from the offshore Samurai loan market. It is also the highest single foreign currency loan raised by NTPC. The loan has been raised under the automatic route of the Reserve Bank of India’s external commercial borrowings regulations. It has been fully underwritten by the State Bank of India (Tokyo), Sumitomo Mitsui Banking Corporation (Singapore) and Bank of India (Tokyo). The facility has a door-to-door maturity of 11 years under two tranches.

PFC raises $750 million through a bond issue

Power Finance Corporation Limited (PFC) has issued 10.25-year, $750 million bonds under Reg S and 144 A routes. The bonds have a fixed coupon rate of 3.95 per cent per annum and a yield of 4.066 per cent. With this offering, PFC has become the first Indian public sector company to issue senior unsecured dollar bonds with a tenor of over 10 years. This is also PFC’s third international bond issuance in 2019-20 as well as its largest single tranche bond. The final order book amounted to over $2.2 billion.

SJVN ties up finance for Arun-III hydro project in Nepal

SJVN Arun-3 Power Development Company Private Limited (SAPDC) has signed agreements with banks to tie up finance for the 900 MW Arun-III hydropower project, which will cost around Rs 68.8 billion. Five Indian banks, State Bank of India, Exim Bank, Punjab National Bank, Canara Bank and Union Bank of India, and two Nepalese banks, Everest Bank and Nabil Bank, are involved in providing finance for the project. The project will provide the Nepal government with 21.9 per cent free electricity supply. The project will export electricity to India after its completion and will be handed over to Nepal 25 years after its completion.

AEML raises $1 billion through its first dollar bond issuance

Adani Electricity Mumbai Limited (AEML), a wholly owned subsidiary of Adani Transmission Limited, has completed the issuance of bonds worth $1 billion with an oversubscription of 5.9 times. This is the first dollar bond issuance by a private integrated utility player from India. The placement consists of a 10-year paper with a bullet maturity. The proceeds will be used to repay AEML’s existing INR-denominated debt and fund general corporate requirements. In a separate development, the Qatar Investment Authority (QIA) has completed the acquisition of a 25.1 per cent stake in AEML, along with a shareholder subordinated debt investment in the company. QIA’s total investment in AEML is around Rs 32.2 billion, which includes an equity consideration of Rs 12.1 billion and a shareholder subordinated debt of around Rs 20.1 billion.

NTPC’s board approves acquisition of government stake in NEEPCO and THDC

NTPC’s board has given in-principle approval to the company’s acquisition of 100 per cent stake in NEEPCO and 74.5 per cent stake in THDC India held by the central government. The deal will entail the transfer of management control of the two companies to NTPC. NTPC is expected to spend Rs 100-150 billion on the proposed acquisition.

IndiGrid acquires Rs 10.2 billion transmission project from Sterlite Power

IndiGrid has acquired East North Interconnection Company Limited (ENICL) from Sterlite Power Ventures Limited for Rs 10.2 billion. ENICL’s portfolio includes an interstate transmission project, consisting of two 400 kV transmission lines spanning 900 ckt. km across Assam, Bihar and West Bengal, set up to evacuate power from the north-eastern and eastern states to the northern region of India. The acquisition will increase IndiGrid’s assets by 10 per cent to Rs 121 billion while maintaining the net debt below 49 per cent.

JSW signs agreement for acquiring GMR Kamalanga Energy

JSW Energy Limited has signed a share purchase agreement with GMR Energy Limited for acquiring 100 per cent share in its subsidiary GMR Kamalanga Energy Limited (GMRKEL) for a total consideration of up to Rs 53.21 billion. GMRKEL owns and operates a 1,050 MW (3×350 MW) thermal power plant in Odisha. Post-acquisition, the total installed power generation capacity of JSW will increase to 5,609 MW.

Sunseap Group secures SGD50 million for solar projects in Singapore (Singapore)

The Sunseap Group has received a total sum of SGD50 million (~$36.7 million) from ABC World Asia and Temasek. The company plans to use the investment for developing solar projects in Singapore and other parts of Asia. It has won another tender for the installation of solar panels on buildings across Singapore, which is expected to generate more than 70 MW of solar energy.


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