Financial Briefs

India and overseas

AEML lists $2 billion global medium term note on India INX (India)

Adani Electricity Mumbai Limited (AEML) has listed its $2 billion global medium term note programme on BSE-owned India International Exchange’s (INX) debt listing platform. AEML plans to use the proceeds from the programme to fund its capex. In a separate development, AEML plans to raise $300 million through its first sustainable bond sales overseas. These bonds are expected to offer rates within 3.25 per cent to 3.7 per cent and have a 10-year maturity period. These sustainable bonds qualify for the global environmental, social governance cash pool. Part of the proceeds are expected to refinance an existing offshore loan through bonds and the remaining will be used to fund projects.

IndiGrid acquires 100 MW solar assets worth Rs 6.6 billion from FRV

The India Grid Trust (IndiGrid) has acquired 100 per cent stake in two solar assets with 100 MW capacity from Fotowatio Renewable Ventures (FRV) for Rs 6.6 billion. The 100 MW assets have been fully operational for over two years and are located in the 400 MW Ananthapuramu Solar Park in Andhra Pradesh. With this acquisition, IndiGrid’s asset portfolio has expanded to 14 projects. The current deal marks the first renewable energy acquisition by any InvIT in the country.

NTPC to invest Rs 2.5 trillion in renewable energy development

NTPC Limited has planned an investment of about Rs 2.5 trillion in renewable energy development over the next 10 years, a large part of which will come from the market through a public offer. NTPC has also proposed the listing of its renewable energy subsidiary, NTPC Renewable Energy Limited, in 2022-23 to raise resources to fund its initiative. The company has increased its renewable energy generation addition target from 30 GW to 60 GW by 2032.

APL emerges as the successful bidder for EPMPL’s 1,200 MW Mahan project

Adani Power Limited (APL) has emerged as the successful bidder for the acquisition of Essar Power MP Limited’s (EPMPL) 1,200 MW Mahan thermal power project at Singrauli in Madhya Pradesh. The Committee of Creditors of EPMPL, which is undergoing insolvency resolution under the Insolvency and Bankruptcy Code, has approved the resolution plan submitted by APL. The transaction will achieve closure following approval from the National Company Law Tribunal. The deal size is estimated at Rs 28 billion-Rs 30 billion.

Sterlite Power secures Rs 5.8 billion funding for UKTL project

Sterlite Power has achieved financial closure for the project set up by Udupi-Kasargode Transmission Project Limited (UKTL) and has secured the entire debt funding of Rs 5.8 billion from REC Limited. The interstate transmission system (ISTS) project, across the states of Karnataka and Kerala, is made up of two critical elements, one of which is a 1,000 MVA 400/220 kV gas-insulated switchgear (GIS) substation to be built at Kasargode in Kerala. The project also involves the construction of a 400 kV (quad) D/C transmission line, extending about 240 ckt km, from Udupi in Karnataka to Kasargode in Kerala.

Actis acquires 500 MW of solar power plants from Fortum in India

Global infrastructure investment firm Actis has signed an agreement to acquire 500 MW of solar power projects from Finland-based solar power producer Fortum. Fortum has signed an agreement to divest the 250 MW Pavagada II and the 250 MW Rajasthan solar power plants in India. The total consideration from the divestment on a debt- and cash-free basis, including the effect of deconsolidating the net debt, is expected to be around Euro 280 million (Rs 24.8 billion). The divestment will be completed and the capital gain recorded in three tranches during the second half of 2021 and the first half of 2022.

AfDB grants $83.6 million to support second Ethiopia-Djibouti link (Ethiopia)

The African Development Bank (AfDB) has approved a grant worth $83.6 million for supporting the implementation of the 230 kV Ethiopia-Djibouti Second Power Interconnection project. Of the total funding approved, $69.65 million will be granted to Ethiopia and $13.93 million to Djibouti, both sourced from AfDB’s concessional financing window, the African Development Fund. The project entails the construction of a 102 km long, 230 kV double-circuit transmission line from Semera (Ethiopia) to Galafi (Djibouti border), a 190 km long, 230 kV double-circuit transmission line from Galafi to Nagad in Djibouti, and a 170 km, 230 kV double-circuit transmission line with one circuit strung from Kombolcha to Mile, and then to Semera in Ethiopia. It also includes the establishment of a substation at Mile and extension of the existing 230 kV Kombolcha, Semera and Nagad substations.

MYSUN raises Rs 150 million in debt funding from Tata Cleantech

MYSUN, a rooftop solutions company, has partnered with Tata Cleantech Capital (TCCL) to raise Rs 150 million in debt funding. The company recently launched its solar asset vehicle MYSUN+ to develop projects under the distributed and open access models with an investment of Rs 6 billion in the first phase. This term loan will be used to fund the existing projects of MYSUN+ and the credit line will be used to develop its pipeline projects.

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