Financial Briefs: India and overseas

India and overseas

Powergrid to transfer assets worth Rs 75 billion to PGInvIT in 2023 (India)

Power Grid Corporation of India Limited (Powergrid) is planning to transfer transmission assets worth Rs 75 billion to the PowerGrid infrastructure investment trust (PGInvIT) in 2022-23. The company has identified large assets, including the Power Grid Southern In­ter­connector Tra­n­s­mission System project and the Naga­pattinam Madhu­giri Transmission Limi­ted project, valued at Rs 50 billion for the transfer, along with its 26 per cent stake in an existing special purpose vehicle (SPV), Powergrid Vizag Trans­mi­ssion Li­mited. The company is also open to evaluating the transfer of cost-plus or RTM projects to the InvIT as part of the gover­nment’s Rs 42.5 billion National Moneti­sa­tion Pipe­line (NMP) programme.

SEBI approves Sterlite Power’s IPO to raise Rs 12.5 billion

The Securities and Exchange Board of India (SEBI) has approved Sterlite Power’s initial public offering (IPO) to raise arou­nd Rs 12.5 billion. Sterlite Power had filed the draft documents with the market regulator in August 2021. The proposed IPO will comprise a fresh issue of equity sh­ares with a face value of Rs 2 each, agg­re­gating Rs 12.5 billion. The company will leverage the proceeds from the issue for debt repayment of the firm and its arm, Khargone Transmission Limited, and ge­neral corporate purposes.

West Bengal secures $135 million loan from The World Bank for rural power distribution

West Bengal has secured a loan worth $135 million from the International Ba­nk for Reconstruction and Develop­ment to improve the operational efficiency and reliability of electricity supply in select pockets in the state. The variable spread loan or floating interest loan will have a maturity of 17 years, including a grace period of seven years. The West Bengal Electricity Distribution and Grid Mo­der­nisation Project aims to reduce distribution system losses, increase the capacity of the distribution network to meet the growing load demand, improve ov­erall system reliability, make the network re­silient to climate disasters, and im­­prove the institutional capacity of West Bengal State Electricity Distribu­ti­on Company Limited.

RIL raises green loan of $736 million to fund REC Solar’s acquisition

Reliance Industries Limited (RIL) has raised a green loan of $736 million to fin­an­ce its largest overseas purchase, REC Solar Holdings, in Norway. This is RIL’s maiden green loan and is split into a $250 million six-year term borrowing, a $150 million working capital loan and a $336 million five-year bank guarantee. The debt funding was extended by the Au­s­tralia and New Zealand Banking Gr­oup, Credit Agricole, DBS Bank, HSBC and Mitsubishi UFJ Financial Group.

Adani Transmission signs agreement to ac­quire MPSEZ Utilities for Rs 1.16 billion

Adani Transmission Limited (ATL) has signed a share purchase agreement with Adani Ports and Special Economic Zone to acquire MPSEZ Utilities Limited (MUL) for Rs 1.16 billion. ATL will acquire 13,135,000 (100 per cent) equity shares of Rs 10 each of MUL. MUL’s total distribution network currently stands at around 100 km, comprising 75 km of underground lines and 25 km of overhead lines.

CCI approves acquisition of 40 per cent stake in Sterling and Wilson Renewable Energy by RIL

The Competition Commission of India (CCI) has approved the acquisition of stake in Sterling and Wilson Renewable En­­ergy Limited (SWREL) by RIL’s wholly owned subsidiary Reliance New Energy Solar Limited (RNESL). The deal envisages the acquisition of 40 per cent equity share capital of SWREL (formally Sterling and Wilson Solar Limited) by RNESL. Ho­w­­ever, the acquisition can go up to 51.07 per cent of the equity share capital in the event of full acceptance of the open offer.

PFC signs agreement to finance 350 electric buses in Uttar Pradesh

PFC Limited has signed an agreement to lend Rs 2.75 billion for the deployment of 350 e-buses across nine cities of Uttar Pradesh. The agreement was signed with GreenCell Mobility, an e-mobility platform supported by the Indian and UK go­vernments to boost the adoption of electric vehicles in the country. The buses will be deployed in the cities of Agra, Meerut, Aligarh, Bareilly, Ghazia­bad, Mathura, among others.

REC avails ODA loan of $169.5 million from KfW Development Bank

REC Limited has signed an agreement with KfW Development Bank to avail official development assistance (ODA) term loan of $169.5 million under the Indo-German Bilateral Partnership. The ODA loan will be deployed for part financing of innovative solar PV-based generation projects in India at competitive interest rates. This is the fifth credit line signed between REC Limited and KfW for financing of power sector projects and third credit line for financing of renewable energy projects.

ADB approves $600 million loan to finance power grid and clean energy projects (Java)

The Asian Development Bank (ADB) has authorised a $600 million loan to assist state-owned power utility Perusahaan Listrik Negara (PLN) in improving the st­a­bility and reliability of supply and promoting the use of sustainable energy in Java. The loan will be extended under ADB’s Sustainable and Reliable Energy Ac­c­­ess Program. The loan will be used to finance PLN’s transmission line impro­vement, power grid automation, and hazardous waste storage projects. It will also finance the digitalisation and auto­mation of business operations and the construction of electric vehicle charging stations in Indonesia.