NTPC REL signs first green term loan of Rs 5 billion with Bank of India (India)
NTPC Renewable Energy Limited (NTPC REL) has signed its first green term loan agreement of Rs 5 billion. The agreement has been signed at a competitive rate, with a tenor of 15 years, with the Bank of India for its 470 MW solar projects in Rajasthan and 200 MW solar project in Gujarat. NTPC REL currently has a renewable project portfolio of 3,450 MW, of which 820 MW of projects are under construction and 2,630 MW of projects have been won, for which PPAs are pending execution.
NHPC’s board approves the setting up of a subsidiary for its renewable energy business
The board of directors of NHPC Limited has approved a proposal to set up a subsidiary for the development of re-newable energy, small-hydro and green hydrogen projects. The wholly owned subsidiary company will be formed subject to the approval of the Government of India. The board has approved an initial equity of Rs 200 million for the proposed subsidiary. It has also approved the formation of another wholly owned subsidiary by NHPC to act as an investment vehicle and a company for commissioned hydro projects to enable monetisation of investments. In a separate development, NHPC has received shareholder approval to raise its borrowing limit by Rs 100 billion, from Rs 300 billion to Rs 400 billion, keeping in view the company’s funds requirements due to the rapid capacity addition programme.
REC raises five-year loan of $75 million from SMBC
REC Limited has raised a $75 million, five-year secured overnight financing rate (SOFR)-linked syndicated term loan, with the Sumitomo Mitsui Banking Corporation (SMBC), Singapore branch, appointed as the sole mandated lead arranger and bookrunner. REC has also entered into an interest rate swap referencing SOFR to hedge the interest rate risk on this facility. This is the first such deal by a corporate in India. The proceeds will be utilised to fund infrastructure and power projects as permitted under the external commercial borrowing guidelines of the Reserve Bank of India.
Powergrid board approves investment for various projects
Power Grid Corporation of India Limited’s (Powergrid) board has allowed an investment of Rs 142.3 million for an electric vehicle charging station in Navi Mumbai under FAME India Phase II. The charging station is expected to be commissioned in 12 months from the date of agreement, to be signed between Powergrid and the Navi Mumbai Municipal Transport. The board has also approved the incorporation of a wholly owned subsidiary to undertake its telecommunications and digital technology business.
RNESL acquires REC Solar Holdings for $771 million
Reliance New Energy Solar Limited (RNESL), a wholly owned subsidiary of Reliance Industries Limited (RIL), has acquired REC Solar Holdings from China National Bluestar (Group) Company Limited for an enterprise value of $771 million. The acquisition is in line with RIL’s objective to become net carbon zero by 2035 following its announcement in June 2021 of investing $10.1 billion in clean energy over three years. In a separate development, RNESL has offered Rs 375 per share to acquire 49.1 million shares of Sterling and Wilson Solar for over Rs 18.4 billion. The 49.1 million shares constitute 25.9 per cent equity stake or the entire public holding in Sterling and Wilson Solar Limited. The shares will be acquired from public shareholders by RNESL together with RIL (PAC 1) and Reliance Ventures Limited (PAC 2).
Sembcorp Industries raises SGD 675 million through SLBs
Singapore-based Sembcorp Industries has raised SGD 675 million through sustainability-linked bonds (SLBs) with a tenor of 10.5 years and a coupon rate of 2.66 per cent. The funds will be utilised to finance the company’s working capital requirements, refinance the group’s existing debt and finance or refinance its renewable energy projects. The SLBs have been an-chored by an investment of SGD 150 million from the International Finance Corporation (IFC). It also marks IFC’s first investment globally as an investor in an SLB. Sembcorp’s SLB is the first issuance by an energy company in Southeast Asia and the region’s largest such issuance to date.
Oorja secures $1 million in seed funding
Oorja Development Solutions has secured $1 million in seed funding from Schneider Electric Energy Access Asia. Oorja will utilise the funding for agri-solar infrastructure projects and for expanding its operations in northern India. The company is expected to deploy 121 solar projects concentrated in 22 clusters, impacting up to 6,000 low-income houses, by December 2022.
World Bank approves loan for Cisokan pumped storage hydro project (Indonesia)
The World Bank has approved a $380 million loan for the development of the Cisokan hydropower project in Indonesia. The 1,040 MW plant will be constructed on the Cisokan River between Jakarta and Bandung. This will be the first pumped storage hydro plant in the country. Once operational, it will add generation capacity to meet peak load demand, provide storage capacity to enable greater renewable energy output, and relieve stress on the transmission network. The Java-Bali grid provides energy for 70 per cent of Indonesia’s population.