Financial Briefs: India and overseas

India and overseas

Powergrid transfers 74 per cent stake in five SPVs to PowerGrid InvIT (India)

The Power Grid Infrastructure Investment Trust (PGInvIT), sponsored by Power Grid Corporation of India Limited (Powergrid), debuted at Rs 104 per unit on the Bombay Stock Exchange, a premium of 4 per cent over its issue size of Rs 100 per unit. The initial public offering (IPO) of PGInvIT, which ran from April 29, 2021 to May 3, 2021, was subscribed 4.83 times on the last day. Powergrid has transferred 74 per cent of its stake in five special purpose vehicles (SPVs) to PowerGrid InvIT. These SPVs are Powergrid Vizag Transmission Limited, Powergrid Kala Amb Transmission Limited, Powergrid Parli Transmission Limited, Powergrid Warora Transmission Limited and Powergrid Jabalpur Transmission Limited. Of the over 410 million units allotted to it, Powergrid retained 136.5 million units and sold the remaining units through an offer for sale (OFS). It received an amount of Rs 27.36 billion against the OFS.

AGEL to acquire 100 per cent stake in SB Energy

Adani Green Energy Limited (AGEL) has signed share purchase agreements for 100 per cent acquisition of SB Energy Holdings Limited, which has a renewable energy portfolio of 4,954 MW in India. AGEL will acquire the stake from the SoftBank Group Corp (80 per cent) and the Bharti Group (20 per cent). The transaction values SB Energy at about $3.5 billion. The company’s portfolio comprises 1,400 MW of operational solar power capacity and 3,554 MW of projects under construction. This transaction is the largest acquisition in the renewable energy sector in India, which will increase AGEL’s total renewable energy capacity to 24.3 GW, including 4.9 GW of operating capacity.

JSW Hydro Energy raises $707 million overseas via green bonds

JSW Hydro Energy Limited has raised $707 million (about Rs 52 billion) through an international green bond issue. The fixed rate senior secured green 144A/Reg S bonds for a 10-year tenor were priced at 4.125 per cent. The proceeds from the issuance will be used towards the repayment of th existing green project-related Rupee-denominated debt. The company engaged with several investors on a global deal roadshow across Hong Kong, Singapore, London, New York and Los Angeles. Backed by a strong investor feedback, the transaction was launched with an initial price guidance of 4.5 per cent area and later reduced by 37.5 basis points to 4.125 per cent as final pricing. The final order book stood at over $2.6 billion with oversubscription of 3.7 times. The transaction witnessed 64 per cent participation from Asia, 14 per cent from the US, and 22 per cent from Europe, the Middle East and Africa. Around 82 per cent investment came from long haul funds, 17 per cent from financial institutions (including sovereign wealth funds), and 1 per cent from private banks.

JSPL to divest 96 per cent stake in Jindal Power

Jindal Steel and Power Limited (JSPL) has accepted a binding offer from Worldone Private Limited to divest a 96.42 per cent stake in Jindal Power Limited (JPL). The divestment is in line with JSPL’s objective to continuously reduce debt, focus on its India steel business and reduce its carbon footprint by almost half. The equity value is an all-cash offer of Rs 30.15 billion for a 96.42 per cent stake, which includes 3,400 MW of coal fired power plants in Chhattisgarh and other non-core assets owned by JPL. In another development, JSPL has made a prepayment of Rs 24.62 billion to its term lenders to become debt free. JSPL is focused on debt reduction of over Rs 200 billion from a peak of around Rs 465 billion in third quarter of 2016-17 to Rs 256 billion as reported in the third quarter of 2020-21.

CDC Group to invest Rs 2.50 billion in Fourth Partner Energy

Hyderabad-based solar energy firm Fourth Partner Energy has received a Rs 2.50 billion investment from the UK’s development finance institution, CDC Group. Capital from the CDC Group will be in the form of non-convertible debentures and will be utilised by Fourth Partner Energy for expanding its solar portfolio.

SunSource Energy secures funding from SHV Energy

The Netherlands-based SHV Energy has acquired a majority stake in Noida-based SunSource Energy. As part of this transaction, the original investor Neev Fund, which is promoted by India’s largest commercial lender State Bank of India and the UK government, has obtained a successful exit. With this investment, SHV Energy has entered India’s fast growing renewable energy market, focusing on solutions for commercial and industrial customers. SunSource aims to increase its installed capacity to over 550 MWp by 2023.

Total Eren secures financing for 100 MW solar project in Uzbekistan (Uzbekistan)

Total Eren, a leading renewable energy independent power producer based in Paris, has secured financing for its 100 MW Tutly solar PV project located in Uzbekistan. The loans totalling Euro 87.4 million are provided by the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and Proparco, an affiliate of the French Development Agency. EIB financed the project through a Euro 43.7 million loan, while EBRD and Proparco contributed about Euro 21.8 million each. The power plant is expected to be commissioned by the end of 2021.