Recent Financing: India and overseas

India and overseas

India and overseasNTPC raises Rs 43.74 billion via bonds (India)

NTPC Limited has raised Rs 43.74 billion through a private placement of unsecured non-convertible bonds in the nature of debentures at a coupon of 6.55 per cent per annum with a door-to-door maturity of three years and one day. The proceeds will be utilised for funding capital expenditure, refinancing existing loans and other general corporate purposes.

ATL raises $90 million on a private placement basis

Adani Transmission Limited (ATL) has raised $90 million on a private placement basis. The $90 million US-denominated fund has been raised by ATL’s six wholly owned subsidiaries as a part of its $400 million fundraising plan. With this, ATL has 30-year, 10-year and 17-year papers in the market.

CCI approves Hitachi’s stake buy in ABB’s power grid arm

The Competition Commission of India (CCI) has approved the acquisition of 80.1 per cent stake in ABB Management Holding AG by Japan-based Hitachi Limited. In December 2018, the ABB Group had stated that Hitachi would buy 80.1 per cent stake in its power grids arm in a deal that values its grid business at $11 billion. The deal is expected to be completed by the first half of 2020.

IndiGrid acquires Sterlite Power’s transmission asset for $134 million

India Grid Trust (IndiGrid) has announced the acquisition of Sterlite Power’s transmission asset, East North Interconnection Company Limited (ENICL), worth $134 million. With this acquisition, IndiGrid’s assets under management will increase by 10 per cent to $1.6 billion and the move will increase its asset portfolio to nine transmission projects, with a total network of 20 transmission lines. For the purpose of refinancing the existing debt in ENICL, IndiGrid has availed of funding of Rs 9 billion from Axis Bank.

Sterlite Power concludes sale of three transmission projects in Brazil for $100 million

Sterlite Power has concluded the sale of three assets in Brazil worth BRL 566 million, which will help the company advance its business strategy in the country. The three assets are Arcoverde, Novo Estado and Pampa. The Arcoverde project, acquired by investment fund Vinci Energia, has been in operation since May 2019. The Novo Estado project has been acquired by ENGIE Transmissão de EnergiaParticipações, while the Pampa project has been acquired by FIP BrasilEnergia and CYMI Construções. The Pampa project is scheduled for completion in March 2023. The company still holds seven projects in several Brazilian regions, which are in different phases of execution.

SBI-led lenders approve Suzlon’sRs 140 billion loan recast 

Suzlon Energy has received approval from its lenders led by the State Bank of India (SBI) to restructure its Rs 140 billion debt. The company and the lenders had been working on the resolution plan as per the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019 issued by the central bank through a circular dated June 7, 2019. The bankers have in principle agreed to the plan, which will convert its sustainable debt into equity, require banks to write off a part of its unsustainable debt, and have promoter entities infuse around Rs 4 billion in equity in the company.

Tata Power divests entire 50 per cent stake in South African JV Cennergi

Tata Power has concluded the sale of its entire 50 per cent stake in South African joint venture (JV) Cennergi (Pty) Limited to Exxaro Resources Limited for around Rs 6.59 billion. Cennergi was a 50:50 JV between Exxaro, a leading South African coal producer, and Khopoli Investments Limited, a wholly owned subsidiary of Tata Power. Exxaro will now have 100 per cent ownership of Cennergi.

SP Infra to sell solar assets to KKR

ShapoorjiPallonji Infrastructure Capital (SP Infra) has announced the signing of a definitive agreement with global investment firm KKR to sell five solar assets aggregating 317 MW for a total consideration of Rs 15,540 million. The portfolio comprises 169 MW of assets in Maharashtra and 148 MW in Tamil Nadu. SP Infra is an infrastructure development firm with assets and businesses in the renewables and gas-based power, highways, and ports and terminals sectors in India and overseas.

Lenders disagree over Jindal India Thermal Power’s debt resolution offer 

Jindal India Thermal Power Limited’s debt resolution process has been stalled as its 17-member lenders’ consortium failed to reach a consensus on an offer from its promoters to repay Rs 24.5 billion. The company owes banks Rs 70 billion and had come into financial distress after facing shortages of coal to fuel its plant.  The company has a 1,200 MW thermal power plant in Odisha. The lenders’ consortium is led by Punjab National Bank.

Equis Development to invest $4 billion in renewable energy in the next two years (Singapore)

Equis Development plans to invest over $4 billion in renewable energy projects across Asia-Pacific over the next two years. In addition to renewable energy, Equis will invest around $2 billion in recycling infrastructure. The company’s target markets include developed Asia-Pacific markets such as Australia, South Korea, Japan and Taiwan. Equis plans to develop 225 MW of biomass projects in Japan worth $1.4 billion as well as complex hybrid microgrids to support remote mining operations and communities in Australia.