Recent Financings

India and overseas

Loans worth Rs 1,080 billion sanctioned to discoms under liquidity scheme (India)

REC Limited and the Power Finance Corporation (PFC) have sanctioned loans worth Rs 1,080 billion under the liquidity package for stressed power distribution utilities. In addition, REC has sanctioned a Rs 27.9 billion loan to Jammu Kashmir Power Corporation Limited (JKPCL) under the scheme. The agreement was recently signed between the Jammu & Kashmir Government, JKPCL, REC and PFC.

NTPC gets shareholders’ approval to raise up to Rs 150 billion via bonds

NTPC has received shareholders’ approval to raise up to Rs 150 billion through the issuance of bonds. The funds are proposed to be raised on a private placement basis in one or more tranches, not exceeding 30. The funds will be raised for capital expenditure, working capital and general corporate purposes in the domestic market. The company also received members’ approval to amend the memorandum of association to focus on new business segments such as e-mobility, waste-to-energy, manufacture of value-added products from fly ash, gypsum, etc., and seawater desalination.

AGEL completes acquisition of 205 MW of solar assets

Adani Green Energy Limited (AGEL) has completed the acquisition of 205 MW of operating solar assets from Essel Green Energy Private Limited and Essel Infraprojects Limited. The assets are located in Punjab, Karnataka and Uttar Pradesh, and have long-term PPAs with various state discoms, with an average remaining PPA life of 21 years. AGEL recently transferred 205 MW of operating solar assets to its joint venture (JV) with Total Solar Singapore Pte Limited for an enterprise value of Rs 16.32 billion. In April 2020, AGEL and Total formed a 50:50 JV for 2,148 MW of solar power assets in India, at an enterprise value of Rs 173.85 billion.

CLP India’s wind energy arm raises around Rs 3 billion via green bonds

CLP India’s wind energy arm, CLP Wind Farms (India) Private, has raised Rs 2.96 billion through green bonds. The CLP Group’s India subsidiary aims to use the proceeds to refinance loans used for wind power projects. Standard Chartered Bank and DBS Bank India are the arrangers for the bond issuance, for a tenor of two to three years. India Ratings and Research has assigned a rating of AA to the bonds. The yearly coupon bonds will be issued in two tranches – Rs 1.96 billion and Rs 1 billion. The CLP Group, through CLP India, is one of the largest foreign investors in the country’s power sector. It has a diversified portfolio of 3,000 MW, which includes thermal, wind and solar energy projects, as well as transmission assets.

IndiGrid unit holders approve KKR as InvIT sponsor with special majority

India Grid Trust’s (IndiGrid) unit holders have approved the induction of private equity (PE) firm Esoteric II Pte, an affiliate of KKR & Co., as a sponsor, with a special majority of over 75 per cent. The PE firm, which had withdrawn intent to become a sponsor in August 2020, made a fresh application this month. IndiGrid is planning to add operational solar power projects to its current portfolio of transmission assets as a long-term strategy. With over 75 per cent unit holders approving the move, KKR will not need to compulsorily pick further stake. Through a Rs 10.84 billion investment made in May 2019, KKR picked up a 23 per cent stake in IndiGrid.

KPTL and JV partner complete stake sale in Jhajjar KT to IndiGrid

Kalpataru Power Transmission Limited (KPTL) and its JV partner have completed the sale of 100 per cent equity stake in Jhajjar KT Transco Private Limited (JKTPL) to IndiGrid. KPTL has completed the sale of about 37.78 per cent of equity shares. Earlier, in May 2020, KPTL had announced that it would sell the JV at an enterprise value of Rs 3.1 billion to IndiGrid. JKTPL holds the first transmission project secured by KPTL and TEECL on a design-build-finance-operate-transfer basis. The project comprises three 400 kV transmission lines and two 400 kV substations in Haryana.

India offers a $100 million LoC to Sri Lanka for solar projects

India has offered a line of credit (LoC) worth $100 million to Sri Lanka for developing three solar projects. The LoC will cover financing for rooftop solar systems for 20,000 households and 1,000 government buildings across the island. The combined generation capacity of these rooftop systems will be about 60 MW. The LoC will also provide financing for a floating solar power plant.

ADB approves a $200 million loan for power sector improvements (Uzbekistan)

The Asian Development Bank (ADB) has approved a $200 million policy-based loan to strengthen Uzbekistan’s power sector by improving its financial sustainability. This policy-based loan, the first-of-its-kind in Uzbekistan’s energy sector, will be critical to support complex reforms and deepen private investment in the sector. ADB’s Power Sector Reform Program will provide budget support and targeted policy actions aimed at restructuring the power sector, with a focus on institutional strengthening of Uzbekenergo, the state-owned national grid developer. The programme has been jointly developed with the Agence Française de Developpement, which will provide co-financing of about $174 million through loans.

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