Financial Briefs: India and overseas

PFC and REC further reduce lending rates by 40 bps (India)

The Power Finance Corporation (PFC) and REC Limited have further reduced their l­e­nding rates across all types of lo­ans by 40 bps. In the past one year, both or­g­a­­nisations have reduced their lending ra­tes cumulatively by up to 3 per cent. To give a boost to renewable energy projects, the rates have been revised to 8.25 per cent. Notably, PFC and REC are already pr­o­­viding short-term loans at interest ra­tes of 6.25 per cent. The reduction in rates has been possible due to the organi­sa­ti­ons’ low cost of borrowings in the past year.

GoI approves equity infusion of Rs 15 billion in IREDA

The Cabinet Committee on Economic Affairs has approved an equity infusion of Rs 15 billion in the Indian Renewable En­er­gy Development Agency (IREDA). This equity infusion will enable IREDA to lend Rs 120 billion to the renewable en­ergy sector, to facilitate the debt requ­ire­ment of an additional 3,500-4,000 MW of rene­wable energy capacity. The equity infusion will enhance IREDA’s net worth, whi­ch will help it in additional renewable en­ergy financing and improve its capital-to-risk weighted assets ratio to facilitate len­ding and borrowing operations.

NTPC invites RfPs to raise up to $750 million via the ECB route

NTPC has invited requests for proposals (RfPs) for raising up to $750 million (ar­ound Rs 55.7 billion) via external comm­e­rcial borrowings (ECBs) to fund its po­w­er projects, including renewable energy projects. The company is looking to raise ECB in the form of a term loan amounting to $500 million plus a greenshoe op­tion of $250 million. The company plans to utili­se the proceeds for capital expenditure towards ongoing/new capacity addition including renewable energy projects, coal mining and washeries, as well as for refinancing the existing ECBs/rupee loans availed of domestically for capex.

REC raises $1,175 million from a consortium of seven banks

REC Limited has raised $1,175 million from a consortium of seven banks as the mandated lead arrangers and bookrunn­ers. The deal, benchmarked to the USD London Interbank Offered Rate, was an­chored by seven Indian and in­t­er­na­tional banks: Axis Bank, Bank of Ba­roda, Bank of India, Canara Bank, DBS Bank, Mits­u­bishi UFJ Financial Group and Sumitomo Mitsui Banking Corpo­ration. The deal will be launched in the Asian Loan Syn­di­cation market shortly. The proceeds from this facility will be uti­lised to fund infrastructure power sector projects.

ReNew raises $400 million by issuing green bonds

India Clean Energy Holdings, a wholly owned subsidiary of ReNew Energy Global Plc (ReNew), has raised $400 million through green bonds. The company has issued senior secured dollar notes at 4.5 per cent. The Climate Bonds Initia­tive has certified the dollar notes as gr­een bonds, and the bonds will be listed on the Singapore Stock Exchange. The green bo­nds have a tenor of 5.25 years. The money will be used to refinance existing high-cost debt and fund capital expenditure in renewable energy assets, among others.

Ayana Renewables acquires 250 MW solar plant from ACME

Ayana Renewable Power Private Limi­ted, owned by the National Investment and Infrastructure Fund, has closed a deal to acquire ACME Solar’s 250 MW solar po­wer plant. The project, located in Jodh­pur, is connected to the interstate transmission system and supplies power to Maharashtra State Electricity Dis­tribu­tion Company Limited under a long-term PPA. With this transaction, Ayana is now developing and managing around 3 GW of renewable energy.

NTPC plans to bring in strategic investor for its clean energy arm, NREL

NTPC Limited plans to bring in a strategic investor for its clean energy arm, NTPC REL (NREL), ahead of its likely lis­t­ing on the bourses next year. The listing is a part of NTPC’s Rs 150 billion divestment plan over the next three years. The plan also includes the listing of North Eastern Electric Power Corporation Li­mi­ted and NTPC Vidyut Vyapar Nigam Limited by March 2024, as well as the sale of its stake in NTPC-SAIL Power Co­mpany Limited.

Power CPSEs record 47 per cent growth in capex during April-December 2021

The central public sector enterprises (CPSEs) under the MoP have incurred a capex of Rs 403.95 billion during April-De­­cember 2021, which is 47 per cent hig­her than the capex incurred during April-December 2020. The CPSEs have collectively met 80 per cent of the capex target of 2021-22, that is, Rs 506.91 billion. The top power sector performers include the Power Grid Corporation of India (90.6 per cent), SJVN (90.19 per cent), NTPC (86.5 per cent) and THDC (85.38 per cent).

Philippine National Bank to finance a hy­dro­power project in Bukidnon province (Ph­ilippines)

The Philippine National Bank has au­thorised a PhP 2.4 billion loan to finance the development of a proposed 12 MW hydropower plant in Bukidnon, Phili­pp­ines. The Mangima hydro project will be developed under a partnership between the Philnew River Power Corpo­ration and Gr­een Renewable Holdings Corporation. It is expected to begin commercial operations in 2024. Once completed, the plant will generate 64.12 GWh of renewable energy per year.