Recent Financings

India and overseas

Adani Power acquires AES’s stake in OPGC

Adani Power Limited (APL) has signed a definitive agreement to acquire 49 per cent stake in Odisha Power Generation Corporation (OPGC) from the US-based AES Corporation (AES) for $135 million. Adani Power will acquire a total of 8.9 million equity shares held in OPGC, accounting for 49 per cent of OPGC’s total issued, paid-up and subscribed equity share capital. The balance 51 per cent stake in OPGC is owned by the Odisha government. OPGC operates a 1,740 MW thermal power plant at Banharpalli in the Jharsuguda district of Odisha. In a separate development, APL’s board has approved the proposed delisting of the firm from the bourses. The company has fixed a floor price of Rs 33.82 per share to buy 965.3 million equity shares worth about Rs 32.64 billion available with the public shareholders. APL has issued a notice for the voluntary delisting of its equity shares from BSE Limited and National Stock Exchange of India Limited and has sought shareholders’ approval through the postal ballot.

Tata Power’s board approves InvIT for its renewable business

Tata Power’s board has given an in-principle approval for setting up an Infrastructure Investment Trust (InvIT) for the company’s renewable business on terms and conditions to be discussed with potential investors. The board has also approved the issuance of 490.5 million equity shares to Tata Sons Private Limited on a preferential basis for an aggregate consideration of Rs 26 billion.

Hitachi completes acquisition of ABB Power Grids

Hitachi Limited has completed the procedures for its 80.1 per cent investment in ABB Power Grids. The acquisition agreement was signed on December 17, 2018. The new company, Hitachi ABB Power Grids Limited, has already begun operations. The alliance with Hitachi is expected to create expansion opportunities for the new entity in areas such as mobility, smart cities, energy storage and data centres, provide financial strength to support ambitious projects and enable access to the Japanese market.

ATL signs definitive agreement to acquire Alipurduar Transmission Limited from KPTL

Adani Transmission Limited (ATL) has signed a definitive agreement with Kalpataru Power Transmission Limited (KPTL) for acquiring the latter’s SPV, Alipurduar Transmission Limited, at an enterprise value of Rs 12.86 billion. The acquisition will take ATL closer to its target of setting up 20,000 ckt. km of transmission lines by 2022. With the acquisition, ATL’s cumulative network will reach over 15,400 ckt. km, of which more than 12,200 ckt. km (including this asset) is operational and more than 3,200 ckt. km is under various stages of execution. KPTL has signed agreements for the sale of all its transmission assets and aims to complete the transfer of these assets in 2020-21.

Sterlite Power refinances Gurgaon-Palwal transmission project

Sterlite Power has refinanced the loan for Gurgaon Palwal Transmission Limited. The new financing to prepay the project loan of Rs 8 billion has been arranged by HDFC Bank. The new facility has been secured at favourable terms, demonstrating the considerably improved risk profile of the project post commissioning. With this transaction, Sterlite Power has achieved a reduction of almost 300 basis points in the interest cost to be incurred by the project on a per annum basis.

Enel Green Power signs deal with Norfund to develop green projects in India

Enel Green Power has finalised a deal with the Norwegian investment fund, Norfund, to finance, build and operate new renewable projects in India. As per the deal, Enel’s Green Power unit will take the lead in developing and building each project that would be jointly financed and governed by Enel and Norfund. The agreement gives Enel the opportunity to expand and strengthen its presence in India. It recently secured its first solar tender in the country under SECI’s 2 GW auction.

NTPC enters into agreement with NIIF to explore business opportunities

NTPC Limited has entered into an MoU with the National Investment and Infrastructure Fund (NIIF) to explore opportunities for investments in areas of mutual interest such as renewable energy and power distribution. The partnership aims to bring together NTPC’s technical expertise and NIIF’s ability to raise capital and bring in global best practices by leveraging its existing relationships with leading players. NTPC targets to have nearly 30 GW of its overall generation capacity from renewable energy sources by 2032. NIIF manages over $4.3 billion of equity capital commitments across its three funds – Master Fund, Fund of Funds and Strategic Opportunities Fund.

Cleantech Solar secures $75 million loan (Singapore)

Singapore-based Cleantech Solar has received a $75 million loan from Dutch bank ING Groep NV to fund its expansion across Southeast Asia. Cleantech will use the funds to build over 500 MW of solar plants. This is reportedly the largest green loan in the commercial and industrial renewables sector in Asia Pacific till date.

Thailand’s Gulf Energy buys 50 per cent stake in German wind farm (Thailand)

Thailand’s Gulf Energy Development has acquired a 50 per cent stake in a German offshore wind farm for Euro 558 million ($631.10 million). According to Gulf Energy, the acquisition of stake in the 464.8 MW BorkumRiffgrund 2 offshore wind farm (BKR2 Project) was in line with the company’s strategy to expand its renewable energy business.

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