Financial Briefs

India and overseas

SJVN subsidiary signs Rs 63.33 billion loan agreement

SJVN Arun-3 Power Development Com­pany, a subsidiary of SJVN Limited in Nepal, has signed a Rs 63.33 billion term loan agreement with a consortium of banks from India and Nepal.  The consortium is led by the State Bank of India and the Punjab National Bank, and includes Exim Bank, Canara UBI and Everest Bank, Nepal and Nabil Bank, Nepal. SJVN aims to complete the construction of the 900 MW Arun-3 HEP in Nepal in 2023-24, one year ahead of the scheduled commissioning in February 2025, as required under the project development agreement and financing documents.

Azure Power refinances its 600 MW ISTS-connected solar project

Azure Power has refinanced the existing project finance facility of Rs 23.5 billion for the construction of its largest project – the 600 MW Interstate Transmission System (ISTS)-connected solar project. The project, implemented by Azure Po­wer Forty-Three Private Limited, a special purpose vehicle, was fully commissioned in December 2021. The refinancing has been completed at an interest rate of 7.2 per cent per annum, which is fixed for 42 months and is the lowest rate of interest for any project finance facility in terms of rupee financing for the company’s existing portfolio so far.

RIL completes the acquisition of 40 per cent stake in SWREL

Reliance Industries Limited (RIL) has completed the acquisition of a 40 per cent equity stake in the Shapoorji Pallo­n­ji Group’s Sterling and Wilson Renew­able Energy Limited (SWREL). RIL’s subsidiary, Reliance New Energy Limited, has acquired 10.37 per cent stake in SWREL at Rs 375 per share, amounting to Rs 7.37 billion, from Shapoorji Pallon­ji and Company Private Limited and Khurshed Daruvala, both promoters of SWREL. This was the last tranche of the transaction, culminating in a 40 per cent stake for RIL.

Torrent Power acquires a 25 MW solar plant in Gujarat

Torrent Power Limited has entered into a share purchase agreement with Blue Daimond Properties Private Limited and Balrampur Chini Mills Limited for the acquisition of 100 per cent equity share capital of Visual Percept Solar Projects Private Limited (VPSPPL). VPSPPL operates a 25 MW solar plant in Gujarat. The enterprise value estimated for the acquisition is Rs 1.63 billion. Currently, equity shares in VPSPPL are held by Blue Dai­mo­nd Properties (55 per cent) and Bal­rampur Chini Mills (45 per cent).

VRET issues Rs 6.5 billion of domestic bonds

The Virescent Renewable Energy Trust (VRET) has raised Rs 6.5 billion through a domestic bond issuance in 7.33-year (Rs 1.5 billion) and 10-year (Rs 5 billion) tranches. The average quarterly coupon of the bonds is 7.93 per cent, fully fixed for the entire tenor. VRET will primarily use the bond proceeds to fund its immediate acquisition-related debt needs as it scales up its portfolio from the existing 450 MW (peak) of operational solar projects. Marquee domestic financial institutions, including India Infrastructure Finance Company Limited and Aseem Infrastructure Finance Limited, have subscribed to the bonds.

NVVN acquires 5 per cent stake in PXIL

NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned subsidiary of NTPC Limited, has acquired a 5 per cent stake in Power Exchange India Limited (PXIL). It purchased PXIL’s shares from NSE Investment, a co-promoter shareholder of PXIL, on January 31, 2022. The stake acquisition is a strategic opportunity for NVVN to maintain its leadership position in the power trading market.

ReNew Power sells 138 MWp distributed rooftop solar portfolio to Fourth Partner Energy for Rs 6.72 billion

ReNew Power has sold 117 MW/138 MWp of its distributed rooftop solar po­rt­folio to Fourth Partner Energy Priva­te Limited for Rs 6.72 billion. After accoun­ting for an outstanding debt of Rs 1.37 billion, the cash proceeds from the sale amounts to Rs 5.35 billion. The sale reaffirms ReNew’s commitment to creating greater shareholder value through capital reallocation into higher-return opp­o­r­­tunities and building efficiency by focusing more on utility-scale projects.

Inox Wind Energy gets shareholder approval to raise up to Rs 900 million

Inox Wind Energy has received shareho­lder approval to raise up to Rs 900 million through the issuance of 1.06 million convertible warrants. The warrants will be issued at Rs 847 per unit. The funds will be raised in one or more tranches within 18 mon­ths of the allotment of the warra­nts. The money will be used for meeting the funding needs of the company, its su­bsidi­a­ries’ consolidated business operations and for general corporate purposes.

KS Orka acquires seven geothermal projects owned by Inter Investment (Indonesia)

KS ORKA Renewables Private Limited has signed a share purchase agreement to acquire 100 per cent shares of Inter In­vestment Private Limited, subject to fulfilment of conditions and precedents. The acquisition is worth $60 million. Inter Investment has a portfolio of seven geothermal projects in Indonesia. The portfolio has a combined capacity of 990 MW and comprises geothermal greenfield high-temperature and binary systems. Inter Investment currently owns four preliminary survey and exploration licences, one geothermal development licence, and two preliminary survey and exploration licences are under application. The renewable energy projects are a part of the Indonesian government’s National Electricity Supply Business Plan 2021-2030.

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