Financial Briefs

India and overseas

PFC’s maiden taxable bond issue oversubscribed

Power Finance Corporation (PFC) launched a Rs 50 billion taxable non-convertible debenture (NCD) issue on January 15, 2020. The issue was subscribed nearly nine times and closed for subscription 11 days ahead of schedule. PFC has planned to raise Rs 100 billion through bonds in two tranches. For the first tranche of Rs 50 billion, subscribers applied for 4.47 million bonds or NCDs of Rs 1,000 each. PFC received subscriptions worth Rs 44.77 billion against the Rs 5 billion base issue size of NCDs on offer (with a greenshoe option of Rs 45 billion). In another development, PFC has increased its market borrowing limit for 2020-21 to Rs 1,180 billion from the earlier limit of Rs 900 billion. The company now plans to raise a maximum of Rs 830 billion from long-term borrowing, Rs 150 billion from long-term foreign currency borrowing, Rs 50 billion from short-term borrowing and Rs 150 billion from commercial papers.

ADB approves $231 million loan for a hydropower project in Assam

The Asian Development Bank (ADB) has approved a $231 million loan for setting up the 120 MW Lower Kopili hydroelectric project in Assam. With this project, Assam Power Generation Corporation Limited’s hydropower generation capacity will double. The loan is the third and largest tranche of the $300 million Assam Power Sector Investment Program approved by ADB in 2014.

NCLT approves NHPC’s Rs 1.65 billion resolution plan for JPCL

The National Company Law Tribunal (NCLT) has approved NHPC’s Rs 1.65 billion resolution plan for taking over Jal Power Corporation Limited (JPCL). JPCL was executing the 120 MW Rangit Stage IV HEP in Sikkim. The company is currently undergoing a corporate insolvency resolution process, which was initiated on April 9, 2019 vide an NCLT order. The cost of the project has been estimated as Rs 9.43 billion and NHPC will make an upfront payment of Rs 1.65 billion. JPCL is the second company after Lanco Teesta Hydro Power Limited to be acquired by NHPC through the NCLT process.

IndiGrid acquires 100 MW of FRV’s solar assets in a Rs 6.6 billion deal

The India Grid Trust (IndiGrid) has acquired the solar portfolio of Madrid-based Fotowatio Renewable Ventures (FRV) in a deal worth Rs 6.6 billion. IndiGrid has signed a purchase agreement for 100 per cent acquisition of FRV Andhra Pradesh Solar Farm I and FRV India Solar Park II from FRV Solar Holdings. FRV I and FRV II operate solar plants of 50 MW (AC) each in the Ananthapuramu Solar Park. The completion of the deal is subject to receiving the necessary approvals and meeting contractual obligations.

Sterlite Power and AMP Capital tie up to develop transmission projects worth $1 billion

Sterlite Power and AMP Capital have announced a partnership to set up four transmission projects in India with a total outlay of $1 billion. Under the equal partnership, the two companies will invest an initial amount of around $150 million each and also put debt financing in place. The projects will comprise a line length of 1,800 ckt. km and will enable power evacuation from multiple renewable energy projects.

PFS approves the resolution of its stressed loan in ITPCL

PTC India Financial Services (PFS) has approved the resolution of its stressed loan account with IL&FS Tamil Nadu Power Company Limited (ITPCL) for the 2×600 MW imported coal-based thermal power project at Cuddalore, Tamil Nadu. The resolution is in line with the lead bank, Punjab National Bank. The restructuring plan includes a sustainable portion (59.38 per cent) of Rs 1.25 billion, proposed to be repaid in 70 structured quarterly instalments starting from the December 2020 quarter till March 2038. For the unsustainable portion (40.62 per cent) of Rs 861.4 million, it is proposed that 0.001 per cent of NCDs be allotted to senior secured lenders, to be redeemed in two annual instalments of 50 per cent each in 2038-39 and 2039-40.

ADB signs a $17.5 million loan agreement for a 100 MW solar power plant in Uzbekistan (Uzbekistan)

ADB and NurNavoi Solar Foreign Enterprise Limited Liability Company (NNS) have signed loans of $17.5 million for a 100 MW solar power plant in Uzbekistan. This will be the first public-private partnership renewable energy project in the country. The financing package includes loans from ADB and the Canadian Climate Fund for the Private Sector in Asia II (CFPS II), which will be administered by ADB. The ADB loan package includes a concessional finance tranche, funded by CFPS II, to support a lower-than-expected power tariff for the project. The energy output from the plant, to be built near Navoi city in central Uzbekistan, will be provided to the national electric grid under a 25-year power purchase agreement.

Adani Power’s agreement to buy stake in OPGC cancelled

Adani Power Limited’s (APL) agreement to acquire a 49 per cent stake in the Odisha Power Generation Corporation (OPGC) from AES Corporation’s  affiliates has been cancelled. The Odisha government, which holds a 51 per cent stake in OPGC, has exercised its right of first refusal. In June 2020, APL had entered into a share sale and purchase agreement to acquire 8.9 million equity shares in OPGC from AES OPGC Holding and AES India, representing 49 per cent of the issued paid-up and subscribed equity share capital of OPGC. The cash consideration of the proposed sale was $135 million.

GET ACCESS TO OUR ARTICLES

Enter your email address