Financial Briefs

India and overseas

ADB approves $190 million loan to upgrade power distribution system in Bengaluru (India)

The Asian Development Bank (ADB) has approved a loan of $190 million to modernise and upgrade the power distribution system in Bengaluru. The ADB assistance for the Bengaluru Smart Energy

Efficient Power Distribution Project includes a $100 million sovereign loan and a $90 million loan without sovereign guarantee to Bangalore Electricity Supply Company Limited. The project will convert 7,200 km of overhead distribution lines to underground cables, with a parallel installation of 2,800 km of fibre optic communication cables.

NTPC offers to buy back masala bonds worth Rs 40 billion from bondholders or lenders

NTPC has offered to buy back its masala bonds worth Rs 40 billion. The offer is for bonds issued by the company in two tranches of Rs 20 billion each in August 2016 and May 2017, due in August 2021 and May 2022 respectively. The bonds due on August 10, 2021 have a coupon rate of 7.375 per cent while those due on May 3, 2022 have a coupon rate of 7.25 per cent. The bonds are payable in US dollars. The notes are currently listed on Singapore Exchange Securities Trading Limited, the London Stock Exchange’s Professional Securities Market, NSE IFSC Limited and India International Exchange Limited.

CCI approves acquisition of OPGC shares by OHPC

The Competition Commission of India (CCI) has given its approval for the acquisition of Odisha Power Generation Corporation Limited’s (OPGC) shares by Odisha Hydro Power Corporation Limited (OHPC). The proposed combination involves the acquisition of 49 per cent equity shares in OPGC from AES OPGC Holding and AES India, pursuant to the share sale and purchase agreement. OHPC is wholly owned and controlled by the Odisha government. Earlier, the Odisha government, which holds 51 per cent stake in OPGC, had blocked Adani Power Limited (APL) from acquiring the AES stake by invoking its right of first refusal in August. In June 2020, APL entered into a share sale and purchase agreement with AES for its 8.9 million equity shares in OPGC.

Tata Power raises Rs 10 billion via debentures

Tata Power has raised Rs 10 billion through the issuance of non-convertible debentures (NCDs). The company raised the amount through the issuance of 10,000 unsecured, redeemable, taxable, listed, rated NCDs on a private placement basis on November 27, 2020. The date of maturity is November 27, 2023. The debentures will be listed on the wholesale debt market segment of the Bombay Stock Exchange and have a fixed rate with an annual coupon payment. In a separate development, its subsidiary, Coastal Gujarat Power Limited (CGPL), has repaid Rs 15.5 billion of bank loans. With this repayment and the earlier repayment of Rs 26 billion of bank loans made in October 2020, CGPL’s entire bank loans aggregating Rs 41.5 billion have been fully repaid.

Adani Transmission completes 49 per cent stake acquisition in Alipurduar from KPTL

Adani Transmission Limited has completed the acquisition of 49 per cent stake in Alipurduar Transmission Limited from Kalpataru Power Transmission Limited (KPTL) for an enterprise value of around Rs 13 billion. The share acquisition is pursuant to definitive agreements signed in July 2020. Alipurduar Transmission operates 650 ckt. km of transmission lines in West Bengal and Bihar. The project was awarded through a tariff-based competitive bidding process on a build-own-, operate and maintain basis. The balance 51 per cent stake will be acquired after obtaining the requisite regulatory approvals.

IndiGrid to acquire 74 per cent stake in Parbati Koldam

The India Grid Trust (IndiGrid) has signed an agreement to acquire 74 per cent stake in Parbati Koldam Transmission Company Limited (PKTCL) from Reliance Infrastructure Limited at an enterprise value of Rs 9 billion. PKTCL, incorporated on September 2, 2002, is a joint venture between Reliance Infrastructure Limited (74 per cent) and Power Grid Corporation of India Limited (26 per cent). PKTCL operates 458 ckt. km of transmission lines for the evacuation of power from the Parbati II hydroelectric project (HEP) implemented by NHPC Limited and Koldam HEP implemented by NTPC Limited. The completion of the acquisition will depend on the receipt of relevant approvals and fulfilment of contractual obligations.

ADB approves $171 million loan to upgrade Myanmar’s power supply network (Myanmar)

ADB has approved a $171.27 million loan to help Myanmar construct 44 medium voltage substations and 1,006 km of distribution lines across Kayin state and the Ayeyarwady, east Bago and Magway regions. The accelerated rural electrification project will expand the grid to enable electrification of 400,300 households in 2,815 villages. It will also set up Myanmar’s first computerised distribution automation system.

CIMB commits to phasing out coal financing by 2040 (Malaysia)

Malaysia’s CIMB Group Holdings Bhd has committed to phasing out coal from its portfolio by 2040, the first banking group in Malaysia and Southeast Asia to do so. The lender’s  new Coal Sector Guide will prohibit asset-level or general corporate financing for new thermal coal mines and coal-fired power plants as well as expansions, except when there are existing commitments. The guide will come into effect next year across all of CIMB’s operating markets.


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