Financial Briefs: India and overseas

India and overseas

MoP directs PFC, REC to arrange short-term loans for imported coal-based plants under stress

The Ministry of Power (MoP) has directed the Power Finance Corporation (PFC) and REC Limited to take the necessary action to arrange short-term loans for a period of six months with adequate safeguards, for imported coal-based (ICB) plants, which are under stress or in the National Company Law Tribunal (NCLT), at the earliest. These plants need working capital to buy coal and start generating power in order to restart their operations. In view of the increased demand and unprecedented pressure on domestic coal supplies, the MoP, on May 5, 2022, issued directions to all ICB plants to operate and generate power to their full capacity, even for projects that are stressed or under NCLT. These directions will ensure that additional electricity is produced through imported coal and will be a net addition. These directions will be effective up to October 2022.

NTPC to raise Rs 15 billion via NCD issuance

NTPC Limited has decided to issue unsecured non-convertible debentures of Rs 15 billion on April 29, 2022, through private placement at a coupon rate of 5.78 per cent per annum with a door-to-door maturity of two years. The proceeds will be utilised for, inter alia, funding of capital expenditure, refinancing of existing loans and other general corporate purposes. The debentures are proposed to be listed on the Bombay Stock Exchange.

Torrent Power acquires 50 MW solar power plant from SkyPower Group

Torrent Power Limited has entered into a share purchase agreement with SkyPo­wer Southeast Asia III Investments Limi­ted and SkyPower Southeast Asia Hold­ings 2 Limited for the acquisition of 100 per cent securities of the special purpose vehicle (SPV), Sunshakti Solar Power Projects Private Limited. The SPV operates a 50 MW solar power project in the state of Telangana. Northern Power Dis­tri­bution Company of Telangana Limited holds a long-term power purchase agreement from the project for a period of 25 years, at a fixed tariff of around Rs 5.35 per kWh, with a re­maining useful life of approximately 20 years. The enterprise value for this acquisition is around Rs 4.17 billion, subject to closing price ad­justments, if any.

Powergrid to buy IL&FS Energy Develop­ment Company’s stake in CPTCL

Power Grid Corporation of India Limited (Powergrid) will purchase IL&FS Energy De­­velopment Company Limited’s (IEDCL) equity shareholding in Cross Bo­­­rder Power Transmission Company Li­mited (CPTCL). According to a regulatory filing, the company’s board has clea­red the proposal for the purchase of 7.73 mi­lli­on equities of IEDCL in CPTCL. Cu­rrently, Powergrid owns 26 per cent stake in CPTCL, while IEDCL, SJVN Limi­ted and the Nepal Electricity Authority own 38 per cent, 26 per cent and 10 per cent stakes respectively.

Powergrid acquires SPV KNTL for Rs 225 million

Pursuant to its selection as the successful bidder under tariff-based competitive bid­ding, Powergrid has acquired 100 per cent equity of Khetri-Narela Transmi­s­si­on Limited (KNTL) for an aggregate val­ue of around Rs 225 million. KNTL is a project SPV to establish the transmission system for the Transmi­ssion System Str­en­gthening Scheme for Evacuation of Power from Solar Energy Zones in Rajas­than (8.1 GW) under Phase II Part G, on a build-own-operate-maintain ba­sis from the bid process coordinator – PFC Con­sulting Limited. The transmission system is an ISTS project and is to be completed in 18 months.

NTPC invites bid to raise Rs 50 billion via term loan to fund capital expenditure

NTPC Limited has invited bids for raising a term loan of up to Rs 50 billion. The pro­ceeds of the loan will be utilised towards capital expenditure for ongoing or new capacity addition programmes, including the takeover of projects, renewable energy projects, coal mining and washeries, renovation and modernisation programmes of various projects, refinancing of loans and general corporate purposes. The minimum amount of loan offered by banks or financial institutions will be Rs 5 billion and in multiples of Rs 5 billion. The bids will be opened on May 27, 2022.

Rays Power Infra sells assets worth over Rs 7 billion to global investors

Rays Power Infra Private Limited has sold its solar projects in Tamil Nadu, Karnata­ka and Telangana to two global investors, at an aggregate enterprise value of over Rs 7 billion. Post the portfolio sale, Rays Po­wer Infra has become completely debt-free with additional cash to boost its next phase of green energy development. The sold assets had a debt worth approxima­tely Rs 4 billion and EBITDA of Rs 950 mi­llion. These were high-tariff, well-perfor­ming assets commissioned between 2017 and 2020. These transactions have en­abled the company to raise enough ca­pital to support its future growth.

Scatec refinances 39 MW wind farm in Vietnam

Norway-based Scatec ASA has refinanced $37 million of non-recourse project debt for its Dam Nai wind farm in Vietnam. The refinancing operation, faci­litated by Vietcombank, enabled Scatec to achieve improved project retu­rn thro­u­gh a redu­ced interest margin and a cov­enant relief, allowing for an immediate cash dis­tri­bu­tion of $6 million. Dam Nai is a 39 MW wind farm located in Ninh Th­uan provin­ce. Scatec owned the wind farm after ac­quiring SN Power from Nor­fund, the Gov­ern­ment of Norway’s in­vestment fund for developing countries, in early 2021. Dam Nai was SN Po­wer’s first wind energy investment.