Financial Briefs: India and overseas

India and overseas

PGInvIT board approves investment worth Rs 6.44 billion in acquisitions (India)

Powergrid Infrastructure Investment Trust (PGInvIT) will acquire stakes in va­ri­ous assets of Power Grid Corpora­tion of India Limited (Powergrid) for Rs 6.44 billion. The board approved the ac­qui­sition of the balance 26 per cent equity shareholding of Powergrid Vizag Trans­mission Limited by PGInvIT from Pow­er­grid at a consideration not excee­ding Rs 3.4 billion. It also approved the acquisition by PGInvIT through its special pu­r­­pose vehicles (SPVs) – Powergrid Pa­rli Tra­nsmission Limited, Powergrid Wa­ro­ra Transmission Limited and Pow­er­grid Jabalpur Transmission Limited – from Powergrid for a consideration not ex­ceeding Rs 810.1 million, Rs 1.12 billi­on and Rs 1.11 billion respectively.

Sterlite Power secures Rs 4.4 billion funding from Tata Cleantech for a transmission project

Sterlite Power Transmission Limited has achieved financial closure for its Nan­g­a­l­bibra-Bongaigaon Transmission Li­mi­­t­ed (NBTL) project, securing the en­tire debt funding of Rs 4.4 billion from Tata Cleantech Capital Limited. The fi­nan­ci­al closure was achieved within two mo­n­ths of the SPV acquisition of the project in December 2021. The project in­vol­ves the construction of 300 ckt. km of transmission lines and a greenfield substation with 320 MVA transformation ca­pacity ac­ross Assam and Meghalaya. The NBTL project will transmit over 1,000 MW of po­wer from Assam to western parts of Meghalaya.

Resurgent Power Ventures receives the LoI for South East UP Power Transmission

Resurgent Power Ventures Private Limi­ted has been awarded a letter of intent (LoI) by the resolution professional of So­uth East UP Power Transmission Co­m­pany Limited (SEUPPTCL) under insolvency and bankruptcy code proceedings. The transaction is part of a stressed asset resolution process initiated by a resolution professional through a competitive bidding process. SEUPPTCL was incorporated as an SPV formed by Uttar Pra­desh Power Transmission Company Li­mi­ted (UPPTCL) to implement and operate the specified intra-state transmission system for a period of 35 years under the public-private partnership model. Re­su­rgent will invest equity and raise debt in SEUPPTCL at a total enterprise value of over Rs 60 billion to implement and commission the project elements on time and turn around the asset in order to maxi­mise value for the stakeholders.

Avaada Energy to issue green bonds for Rs 14.4 billion

Avaada Energy will raise green bonds worth Rs 14.4 billion in the Indian capital market at 6.75 per cent. The bonds, certified by the Climate Bonds Standard Board of the Climate Bonds Initiatives, will be listed on the Bombay Stock Ex­ch­ange and have a tenor of three years. The bonds will help developers raise ca­pital domestically, avoid foreign exchan­ge cu­rrency risk exposure and achieve lower fundraising costs.

Torrent Power completes acquisition of 156 MW of wind plants from CESC Limited

Torrent Power Limited has completed the transaction to acquire 100 per cent equity share capital of Surya Vidyut Li­mited (SPV), a wholly owned subsidiary of CESC Limited. Surya Vidyut operates 156 MW of wind power plants spread ac­ross Gujarat, Rajasthan and Madhya Pra­desh. Long-term power purchase agreements (PPAs) for the projects have been signed with the respective state di­scoms for a period of 25 years, with a weighted average PPA tariff of Rs 4.68 per kWh. With this acquisition, Torrent Power’s total generation capacity, inclu­ding under-development projects, will reach around 4.6 GW with a renewable energy portfolio of more than 1.5 GW. The acquisition initiates Torrent’s rene­w­able energy presence in Rajasthan and Madhya Pradesh and strengthens its po­sition in the renewable energy sector.

Sterlite Power concludes refinancing of the Khargone transmission project for Rs 12 billion

Sterlite Power has successfully refinanced its project loan for the recently commissioned Khargone transmission project. The fresh financing from Aseem Infra­str­ucture Finance Limited (Rs 5.25 billion), NIIF Infrastructure Finance Limited (Rs 4.5 billion) and Aditya Birla Finance Li­mi­ted (Rs 2.25 billion) will enable the company to prepay the existing project loan of about Rs 11 billion. With this transaction, Sterlite Power has achieved a reduction of almost 400 basis points in the in­terest cost to be incurred by the project on a per annum basis. The project achie­ved successful commissioning in end-2021. The project evacuates 1,320 MW of power from the Khargone power plant to the 765 kV Khandwa substation to further distribute it downstream across western and central India.

Green Era acquires stake in Star Energy (Singapore)

Singapore-based Green Era Private Li-mi­ted, a renewables investment firm, has completed the acquisition of a mi­nority stake in Indonesia-based Star Energy Group Holdings Private Limited. The deal has been valued at $440 million. Green Era has purchased 250,801 sh-­ares that represent 33.33 per cent in­terest in the company. The remaining 66.67 per cent stake is held by PT Barito Pacific Tbk. Star Energy owns geotherm­al energy plants in Indonesia with a combined capacity of 875 MW. The portfolio includes the Wayang Windu, Salak and Darajat geothermal power plants.