Recent Financings: India and overseas

India and overseas

India and overseasIndia and overseasIndiGridInvIT to buy Jhajjar KT Transco for Rs 3.1 billion (India)

The India Grid Trust (IndiGrid) has signed an agreement to acquire Jhajjar KT Transco’s transmission assets in Haryana for Rs 3.1 billion from Kalpataru Power Transmission Limited and Techno Electric & Engineering Company Limited. Jhajjar KT Transco operates intra-state transmission assets under the design-build-finance-operate-transfer model to evacuate power from the 1,320 MW Jhajjar thermal power plant in Haryana. Funded through a mix of debt and internal accruals, the deal will boost IndiGrid’s assets under management to about Rs 123 billion. With this deal, IndiGrid’s portfolio will increase to 10 transmission projects with a total network of 23 transmission lines spanning 6,000 ckt. km across 14 states.

Adani Transmission acquires Kharghar-Vikhroli transmission project

Adani Transmission Limited has completed the acquisition of the special purpose vehicle (SPV) for the implementation of the Kharghar-Vikhroli transmission project awarded by the Maharashtra State Electricity Transmission Company. Adani Transmission will build, own, operate and maintain the transmission project for a period of 35 years. The project entails the setting up of 34 km of 400 kV and 220 kV transmission lines along with a 1,500 MVA 400 kV gas-insulated switchgear substation at Vikhroli in Mumbai.

Sterlite Power acquires VNLTL from PFC Consulting

Sterlite Power has acquired Vapi II North Lakhimpur Transmission Limited (VNLTL), an SPV, from PFC Consulting Limited. Through this SPV, the company will execute a large interstate transmission system project, the Western Region Strengthening Scheme XIX and the North Eastern Region Strengthening Scheme IX, which it won under the 35 year build,-own,-operate-maintain model through a tariff-based competitive bidding process.

IL&FS invites EoIs to sell its stake in OTPC

Infrastructure Leasing and Financial Services (IL&FS) has invited expressions of interest (EoIs) to sell its entire 26 per cent stake in ONGC Tripura Power Company (OTPC), its joint venture with the Oil and Natural Gas Corporation (ONGC). IL&FS Financial Services and IL&FS Energy Development Company Limited, both subsidiaries of IL&FS, hold 13.97 per cent and 12.03 per cent stake in OTPC respectively. OTPC operates a 726.6 MW natural gas-based power plant located in Palatana in Tripura. The other shareholders in OTPC are ONGC (50 per cent), India Infrastructure Fund II (23.5 per cent) and the Tripura government (0.5 per cent).

TPIPL acquires 10 per cent stake in ABV

Tata Power International Pte Limited (TPIPL), a wholly owned subsidiary of Tata Power Company Limited, has acquired a 10 per cent equity stake in Adjaristqali Netherlands B.V. (ABV) from the International Finance Corporation (IFC) for $150,000. ABV is a subsidiary of Clean Energy Invest, a Norwegian hydropower generation company. The agreement has been signed among TPIPL, ABV and IFC. Post this acquisition, Tata Power, through TPIPL, holds a 50 per cent stake in ABV. ABV owns 100 per cent stake in Adjaristsqali Georgia LLC, which has developed a 187 MW hydro project in Georgia at a cost of around $500 million. It commissioned 178 MW in March 2020.

Adani Power appoints merchant banker to finalise delisting plans

Adani Power has appointed a merchant banker for the due diligence of its plans to delist from the stock exchanges. The company’s board has taken on record the delisting proposal letter and has appointed Vivro Financial Services Private Limited  as the merchant banker. After receiving the due diligence report from the merchant banker, the company’s board will meet again to discuss the delisting proposal in detail. Adani Power’s promoters currently hold 74.9 per cent stake in the company while the rest comprises public shareholding.

SB Energy seeks up to $750 million for cleantech JV

SB Energy, the renewable energy arm of SoftBank, has mandated Bank of America Merrill Lynch and Barclays to help raise $500 million-$750 million in SBG Cleantech, its 80:20 joint venture (JV) with BhartiAirtel. SBG Cleantech is planning to raise capital to fund its ongoing and pipeline projects in India and the US. On offer is the JV’s entire global portfolio, except Japan where SoftBank’s renewable projects are owned by a separate entity.

ADB to finance Southern Thailand wind power and battery energy storage project (Thailand)

The Asian Development Bank (ADB) has agreed to finance the Southern Thailand wind power and battery energy storage project. The loan was signed with Lomligor, a subsidiary of the BCPG Public Company. In addition, ADB will provide a loan of THB 235.55 million ($7.2 million) to Lomligor for the construction of a 10 MW wind power plant, which will utilise a 1.88 MWh pilot battery energy storage system. The project is expected to generate around 14,870 MWh of electricity annually while offsetting 6,364 tonnes of carbon starting from 2020.

IFC and partners extend $89 million for Afghanistan power project (Afghanistan)

IFC and its partners have signed a debt financing package for Afghanistan’s first long-term public-private partnership, the Mazar-e-Sharif gas-to-power plant in northern Afghanistan. The 59 MW power plant, with an estimated total cost of $89 million, marks a key private energy investment in Afghanistan. The project will be implemented by the Afghan Power Plant Company, established by the Ghazanfar Group, an Afghan conglomerate.