Financial Briefs

India and overseas

Adani Green Energy completes acquisition of three SPVs from Inox Green Energy Services

Adani Green Energy Limited has completed the acquisition of 100 per cent equity share capital of three special purpose vehicles (SPVs) from Inox Green Energy Services Limited (IGESL). The SPVs – Wind One Renergy Limited, Wind Three Renergy Limited and Wind Five Renergy Limited – have commissioned 50 MW each out of the total 250 MW that the company had secured under Tranche 1 of the Solar Energy Corporation of In­dia’s bids for wind power projects at Dayapar, Gujarat, connected to the central grid. IGESL has sold 100 per cent shareholding in the three entities for a cash consideration of Rs 100,000 each.

REC, PFC to provide Rs 85.2 billion finance for 1,320 MW TPP at Buxar

REC Limited and the Power Finance Corpo­ra­­tion (PFC) have signed a memorandum of loan agreement with SJVN Thermal Private Limited (STPL) for fin­ancing the 2×660 MW coal-based Buxar thermal power plant (TPP). The total estimated project cost is Rs 121.73 billion, with a debt requirement of Rs 85.21 billion. As per the agreement, the debt re­quirement will be financed by REC and PFC. The greenfield project, currently be­ing executed by STPL, is designed on supercritical technology and is aimed at providing power to Bihar and improving power reliability in the eastern region.

Suzlon Energy’s Rs 12 billion rights issue oversubscribed 1.8 times

Suzlon Energy Limited’s rights issue has resulted in a subscription of 4.35 billion shares, amounting to an oversubscripti­on of 1.8 times. The issue period was from October 11, 2022 to October 20, 2022. According to the company, the iss­ue size was 2.4 billion partly paid-up eq­uity shares for cash. The funds raised via the rights issue are in multiple calls. The first call at the time of application is Rs 6 billion, which will be used in the manner described in the letter of offer, including for repayment or pre-payment of a portion of certain outstanding borrowings availed of by the company and its subsidiaries.

CCI approves Adani Power’s acquisition of DB Power and Diliigent Power

The Competition Commission of India (CCI) has approved Adani Power Limit­ed’s proposed acquisition of the share capital of Diliigent Power Private Limited and DB Power Limited. The proposed combination involves the acquisition of 100 per cent of the share capital and economic rights of Diliigent Power and DB Power by Adani Power. Diliigent Power has set up a coal-based power plant in Chhattisgarh through an SPV, DB Power Limited. The project was successfully co­mmissioned in 2015. Power from the project is being sold under a combination of long-term and short-term power purchase agreements (PPAs) to state-own­ed/private distribution companies and industrial consumers.

Resurgent Power Ventures completes acquisition of South East Uttar Pradesh Pow­er Transmission Company

Resurgent Power Ventures Private Limi­ted has completed the acquisition of South East Uttar Pradesh Power Tran­s­mi­ssion Company Limited (SEUPPTCL), pursuant to the letter of intent issued by the resolution professional, and app­ro­val of the resolution plan by the National Company Law Tribunal, Allahabad. The transaction was part of a stressed asset resolution process run by PFC. The transaction entailed payment for a one-time settlement of outstanding debt and purchase of equity shares for Rs 32.51 billion as well as a payout of SEUPPTCL’s existing cash balance, as outlined in the resolution plan.

Hero Future Energies to receive $450 million investment from KKR and Hero Group

KKR and the Hero Group have signed definitive agreements to invest $450 million in Hero Future Energies (HFE), the renewable energy arm of the Hero Gro­up. This investment will support HFE in its efforts to expand its renewable energy capacity and capabilities across technologies such as solar, wind, battery sto­rage and green hydrogen, and in new markets over time. Through its range of solutions, HFE will also look to support companies in their efforts to decarbonise and transition towards sustainable energy sources to achieve their net zero emission goals.

Hitachi announces acquisition of remaining shares from ABB ahead of schedule

Hitachi Energy Limited has announced that Hitachi Limited has signed a share transfer agreement for the remaining 19.9 per cent shares from ABB Limited, pursuant to the acquisition agreement signed on December 17, 2018. This is in line with the plan and ahead of schedule. The transfer of shares will be completed by end of December 2022, subject to regulatory approvals.

Abu Dhabi receives funds for offshore electricity transmission project (Abu Dhabi)

The Abu Dhabi Offshore Power Trans­mission Company has received financing of over $3.2 billion for an offshore electricity transmission project. The project entails the construction of a high voltage direct current offshore power transmission system connecting two offshore production facilities owned by the Abu Dha­bi Natio­nal Oil Company to Abu Dhabi’s onshore grid. The project is being jointly financed by the Japan Bank for Interna­tional Cooperation, which has provided funds worth $1.2 billion, and the Export-Import Bank of Korea, Mizuho, Sumi­tomo Mitsui Banking Cor­po­ra­tion, BNP Paribas Fortis and Stand­ard Chartered, which have together provided $2 billion. The project aims to fulfil the UAE’s commitment to reducing carbon dioxide emissions to net zero by 2050.

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