Financial Briefs

India and overseas

Powergrid approves investments worth Rs 22.02 billion (India)

Power Grid Corporation of India Limited (Powergrid) has granted approval for investments worth Rs 22.02 billion for several transmission projects. These include the Transmission System Strengthening Scheme for Evacuation of Power from Solar Energy Zones in Rajasthan (8.1 GW) under Phase II–Part B1, and the North Eastern Region Strengthening Scheme-XII (NERSS-XII). The other investment approvals pertain to capital expenditure for the procurement of telecom equipment for building a dedicated telecom network for the National Transmission Asset Management Centre (NTAMC), the transmission system for power evacuation from the Arun 3 (900 MW) hydroelectric plant in Nepal, for equity investment to pay off the state contribution of 5 per cent of the project cost to the union territory of Jammu & Kashmir and Ladakh; and expenditure towards the procurement of spares for the 220 kV Srinagar-Leh Transmission System.

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

India and Sri Lanka have signed an agreement for a $100 million loan from the Export Import Bank of India to support Sri Lanka’s efforts to expand solar power coverage. The loan will help finance solar projects in line with the Sri Lankan government’s goal of meeting 70 per cent of the power requirement from renewable energy sources by 2030. The line of credit extended by India is for a period of 20 years, with an interest of 1.75 per cent.

CGPL raises Rs 5.7 billion through NCDs

Tata Power’s wholly owned subsidiary Coastal Gujarat Power Limited (CGPL) has raised Rs 5.7 billion through the issuance of non-convertible debentures (NCDs). CGPL has issued and allotted unsecured, rated, listed, taxable, guaranteed, redeemable NCDs on a private placement basis for a tenor of three years. The proceeds of the NCDs will be utilised by CGPL for refinancing its existing debt, capital expenditure and augmentation of working capital. The NCDs have been rated IND AA(CE)/stable by India Ratings & Research, and carry a coupon rate of 5.7 per cent, payable annually.

CCI approves Tata Power’s acquisition of stakes in Odisha discoms  

The Competition Commission of India (CCI) has cleared Tata Power Company’s acquisition of 51 per cent stake each in three state power discoms in Odisha – Western Electricity Supply Company of Odisha Limited, Southern Electricity Supply Company of Odisha Limited and Central Electricity Supply Company of Odisha Limited. The deal follows a separate competitive bidding processes initiated by the Odisha Electricity Regulatory Commission.

RInfra board approves subscription to RPower’s preferential issue

Reliance Infrastructure Limited’s (RInfra) board has approved the subscription to a preferential issue of up to 595 million equity shares and up to 730 million warrants convertible to an equivalent number of equity shares of Reliance Power Limited (RPower), by the conversion of outstanding debt, including interest aggregating to Rs 13.25 billion. The preferential issue by RPower will be made at an issue price of Rs 10 per share. The shareholding of RInfra and the promoter group in RPower will increase to around 25 per cent after the issue of equity shares, and further to over 38 per cent post the conversion of warrants.

Adani Power emerges as the successful bidder for the 1,200 MW Mahan power project

Adani Power has emerged as the successful bidder for Essar Power’s 1,200 MW coal-based TPP in Singrauli district of Madhya Pradesh, which is undergoing bankruptcy proceedings. Adani Power’s bid has been approved by a committee of creditors of Essar Power MP Limited, which holds the Mahan TPP. The transaction will be closed after obtaining approval from the National Company Law Tribunal (NCLT). Essar Power MP Limited, promoted by Essar Power (74 per cent) and ArcelorMittal Nippon Steel India (erstwhile Essar Steel India) (26 per cent), was admitted for bankruptcy in September 2020. Of the claims of over Rs 202 billion made by the creditors, Rs 127.23 billion was admitted before the NCLT. The key lenders include ICICI Bank, REC Limited, Power Finance Corporation, Punjab National Bank, and Edelweiss Asset Reconstruction Company.

AREHFL transfers 74 per cent shareholding of MSEL to Adani Tradecom LLP

Adani Renewable Energy Holding Four Limited (AREHFL), a wholly owned subsidiary of Adani Green Energy Limited (AGEL), has transferred 74 per cent stake of Mundra Solar Energy Limited (MSEL) to Adani Tradecom LLP. According to the BSE filing, 7,400 equity shares have been transferred to Adani Tradecom LLP at a face value of Rs 10 each, aggregating Rs 74,000.

ADB signs a $116 million green loan to build three wind farms in Vietnam (Vietnam)

The Asian Development Bank (ADB) has signed a $116 million green loan to build and operate three wind farms of 48 MW each, totalling 144 MW, in Quang Tri province, Vietnam. The project is expected to increase Vietnam’s wind power capacity by 30 per cent. The loan is with the Lien Lap Wind Power Joint Stock Company, PhongHuy Wind Power Joint Stock Company and Phong Nguyen Wind Power Joint Stock Company. The loan forms part of a $173 million green loan project financing package arranged and syndicated by ADB as the mandated lead arranger and bookrunner.

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