Recent Financings: India and overseas

India and overseas

NTPC raises Rs 10 billion via bonds (India)

On July 31, 2020, NTPC raised Rs 10 billion through the issuance of unsecured non-convertible bonds in the nature of debentures, on a private placement basis. The coupon rate for the bonds is 6.29 per cent per annum with a door-to-door maturity of 10 years, 8 months and 11 days on April 11, 2031. The proceeds will be utilised, inter alia, for funding capital expenditure, refinancing existing loans and other general corporate purposes.

Reliance Power, JERA sign loan agreement for Bangladesh power project

Reliance Power and Japan-based JERA Co. Inc. have signed a loan agreement for full financing, totalling $642 million, for a 745 MW natural gas combined-cycle power project that they are developing at Meghnaghat, Bangladesh. The loan has been signed with a consortium of banks including the Japan Bank for International Cooperation. The electricity generated by the project will be sold under a 22-year long-term PPA with the Bangladesh Power Development Board.

WBSEDCL receives KfW loan for 125 MW solar park project

KfW Development Bank has agreed to extend a soft loan of Rs 6 billion to West Bengal State Electricity Distribution Company Limited (WBSEDCL) for the first phase of the upcoming 125 MW solar park project in Purba Medinipur district in the state. The project will be executed by WBSEDCL, and will, on completion,  double the state’s installed solar capacity. The 15-year loan will carry an interest rate of 0.15 per cent and cover 80 per cent of the total project cost of Rs 7.5 billion. The Department of Economic Affairs has given its clearance for the loan.

Ayana Renewable acquires 40 MW of solar assets from First Solar in Karnataka

Ayana Renewable Power Private Limited has acquired 100 per cent equity stake in two solar PV power plants with a total capacity of 40 MW, developed by First Solar. The two projects are located in Karnataka and will supply electricity to Chamundeshwari Electricity Supply Corporation Limited and Gulbarga Electricity Supply Company Limited under 25-year PPA contracts.

Sterlite Power sells 14.7 per cent stake in IndiGrid

Sterlite Power has sold its 14.7 per cent stake in India Grid Trust (IndiGrid) for Rs 8.4 billion at a unit price of Rs 98 to institutional and high net worth individual investors. In addition, Sterlite Power has reiterated its commitment to execute asset transfers of about Rs 65 billion as per the framework agreement.

CCI approves proposed acquisition of C&S Electric by Siemens Limited

The Competition Commission of India (CCI) has approved the proposed acquisition of C&S Electric Limited by Siemens Limited. The proposed deal envisages the acquisition of 100 per cent of the share capital of C&S Electric Limited by Siemens Limited (Siemens India). The scope of business of C&S will include low-voltage switchgear components and panels, LV and medium voltage power busbars as well as protection and metering devices of C&S. Certain other businesses of C&S, such as MV switchgear and package substation, lighting, diesel generating sets, engineering, procurement and construction, and Etacom busbars will be retained by the existing promoters of C&S.

Odisha government to extend financial guarantee support to GRIDCO

The Odisha government has decided to extend the necessary financial guarantee support to Grid Corporation of Odisha (GRIDCO), as power demand dipped by 14 per cent during the lockdown period from March to June 2020 as compared to the previous year. The reduced demand has led to GRIDCO’s revenue gap widening since it has to pay fixed charges to generating plants as per the PPA. Captive generation and consumption in the state has also reduced by 25 per cent in April 2020, 12 per cent in May 2020 and 2 per cent in June 2020.

Canadian OMERS buys stake in Australia’s TransGrid (Australia)

Canadian pension fund Ontario Municipal Employees’ Retirement System (OMERS) has acquired a 19.9 per cent stake in Australian electricity transmission company TransGrid from Kuwait’s Wren House Infrastructure Management. OMERS and TransGrid did not disclose the financial terms of the deal. According to an Australian Financial Review report, OMERS picked up stake worth over A$2 billion, valuing TransGrid at nearly $12 billion, including debt. Wren House Infrastructure Management invested in TransGrid in 2015 through a consortium of investors that included Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), Morrison & Co, Tawreed Investments Limited, and ASX-listed utility infrastructure investor Spark.

KEPCO and Manikaran Power sign pact to acquire and operate stressed power assets

Manikaran Power Limited has signed an MoU with South Korean enterprise Korea Plant Service & Engineering (KEPCO KPS) to acquire and operate stressed power plants in India. KEPCO KPS provides operations and maintenance (O&M) services for thermal, nuclear and hydropower projects. It has an existing portfolio of 52,000 MW in Korea and an overseas O&M portfolio of about 6,000 MW. Manikaran Power Limited is a power solutions provider with a Category I power trading licence in India.