Financial Briefs

India and overseas

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.

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