Financial Briefs: India and overseas

India and overseas

BlackRock Real Assets-led consortium to invest Rs 40 billion in Tata Power Renewable Energy (India)

Tata Power Company Limited and a ­BlackRock Real Assets-led consortium, including Mubadala Investment Com­pa­ny, have entered into a binding agreement to invest in Tata Power’s renewable energy subsidiary, Tata Power Renew­able Energy Limited. BlackRock Real As­s­ets and Mubadala will invest Rs 40 billion by way of equity/compulsorily convertible instruments for a 10.53 per cent stake in Tata Power Renewable, translating into a base equity valuation of Rs 340 billion. The shareholding will range from 9.76 per cent to 11.43 per cent on final conversion. This newly created platform will consist of five distinct businesses delivering long-term, customer-oriented solutions. It will house all the renewable energy businesses of Tata Power, in­cluding those in utility-scale solar, wind and hybrid generation assets; solar cell and module manufacturing; engineering, procurement and construction contracting; rooftop solar infrastructure; solar pumps; and electric vehicle charging infrastructure.

Abu Dhabi-based IHC to invest in the Adani Group’s Green Portfolio

Abu Dhabi-based conglomerate Interna­tional Holding Company PJSC (IHC) will invest $2 billion (Rs 154 billion) as primary capital in three subsidi­aries of the Adani Group – Adani Green Energy Li­mited (AGEL), Adani Transmis­sion Limi­ted (ATL) and Adani Enter­pri­ses Limited (AEL) – through the preferential allotment route. IHC will invest Rs 38.5 billion in AGEL, Rs 38.5 billion in ATL and Rs 77 billion in AEL. The boards of AGEL, ATL and AEL have approved the transaction. The capital will be utilis­ed for pursuing the growth of the respective businesses, strengthening their balance sheets and general corporate purposes.

Resurgent Power Ventures completes acquisition of NRSS XXXVI Transmission Limited

Resurgent Power Ventures Pte Limited has completed the acquisition of NRSS XXXVI Transmission Limited and settled the debt of NRSS XXXVI’s lender. The transaction is part of the stressed asset resolution process initiated by PTC India Financial Services Limited, the lender of NRSS XXXVI, through a competitive bidding process. The Northern Region Sys­tem Strengthening Scheme (NRSS-XXXVI) has three elements with a total length of 153 km spread across Uttarakh­and, Rajasthan and Haryana. Element 1, comprising a 1.5 km transmission line and two bays of 400 kV, has been completed while work on the remaining 151 km of lines and four bays of 400 kV is under way. The transaction entails payment of a one-time settlement of outstanding debt and purchase of equity shares for a total consideration of Rs 1.27 billion and additional payouts linked to certain events outlined in the share purchase and debt settlement agreement.

Powergrid transfers its remaining shareholding in PVTL to PGInvIT

Power Grid Corporation of India Limited (Powergrid) has transferred the remaining 26 per cent of its shareholding in Powergrid Vizag Transmission Limited (PVTL) to infrastructure investment trust PGInvIT, for a consideration of over Rs 3.30 billion. Further, Powergrid has relinquished its right on additional revenue accruing to Power Grid Parli Trans­mi­ssion Limited, Power Grid Warora Trans­mi­ssion Limited, and Power Grid Jabal­pur Transmission Limited to PGlnvlT for consideration of over Rs 3.04 billion.

BPCL plans to invest Rs 2 billion during 2022-23 to set up EV charging corridors

Bharat Petroleum Corporation Limited (BPCL) plans to invest around Rs 2 billion during 2022-23 to set up 100 fast electric vehicles (EV) charging corridors having 2,000 stations along the busiest 100 national highways (NH). The company has recently opened its first EV charging corridor along the Chennai-Trichi-Madurai highway with one charging unit. By 2024-25, the company has plans to set up 7,000 fast EV charging stations.

Sterlite Power Brasil issues BRL 600 million in debentures (Brazil)

Sterlite Power Brasil, a subsidiary of Indian corporation Sterlite Power Trans­mis­sion Limited, which develops energy transmission projects, has announced the issuance of BRL 600 million of deb­en­­­tures. Banco Modal and Banco Itaú BBA coordinated the transaction, which underlines Sterlite’s long-term commitment to Brazil and reinforces the company’s position in the energy sector. The first issuance of Sterlite’s infrastructure debentures in the Brazilian capital market was in 2019. The funds will be utilis­ed for the Goyaz (GO), Borborema (PB) and Solaris (MG) projects, which play a key role in the transmission of renewable energy from solar and wind farms in the region, helping to improve the Brazilian energy matrix, and are of major importance to the National Inte­gra­ted System. The lots were acquired by Sterlite Power in 2018, shortly after the company entered the country. Together, the three projects aggregate 548.47 km of transmission lines and will benefit 29 million people.