Financial Briefs: India and overseas

India and overseas

SJVN Green Energy achieves financial closure of its 1,000 MW solar power project in Ra­jasthan (India)

SJVN Green Energy Limited has achieved the financial closure of its 1,000 MW solar power project under execution at Bika­ner, Rajasthan. The engineering, procurement and construction contract for this project has been awarded to Tata Power Solar Systems Limited. The total cost of the project is Rs 57.24 billion. It is being financed at a debt-equity ratio of 80:20. The central government will be funding the viability gap of Rs 4.47 billion. The entire debt of Rs 44.45 billion has been tied up with Indian Renewable Energy Development Agency Limited. The project is scheduled to be commissioned in January 2024.

NTPC to raise Rs 5 billion through issuance of NCDs

NTPC Limited is set to raise Rs 5 billion through the issuance of unsecured non-convertible debentures (NCDs) on a private placement basis. The NCDs will ha­ve a coupon rate of 7.44 per cent per annum, with a door-to-door maturity of 10 years, 3 months and 30 days on April 15, 2033. The proceeds from the transaction will be used for funding the capital expenditure, refinancing existing loans, and other general corporate purposes. The NCDs will be listed on the Bombay Stock Exchange.

Kerala secures Rs 8.17 billion loan from KfW for GEC projects

Kerala has secured a Rs 8.17 billion loan from KfW for the implementation of the green energy corridor (GEC) projects of the Ke­rala State Electricity Board (KSEB). The state government is implementing the GEC projects at an estimated cost of Rs 14.57 billion. Of this, Rs 8.17 billion has been sourced from KfW, Rs 2.9 billion from KSEB, and Rs 3.5 bi­lli­on will come from the centre as grant. The North Green Corridor project will cost Rs 9.11 billion, the remaining Rs 2.34 billion and Rs 3.11 billion will be spent on the commissioning of the Ra­ma­kkalme­du Green Corridor in Idukki and Attapp­ady Green Corridor in Pal­ghat, respectively. The GEC projects will have a commissioning timeline of 24 months from the award of works.

AGEL raises Japanese JPY-denominated re­fi­nancing facility

Adani Green Energy Limited (AGEL), through its subsidiary Adani Solar Energy AP Six Private Limited, has raised a JPY-denominated facility to refinance its debt. The facility will amortise a project loan facility of JPY 27.95 billion and assess the 16-year debt structure with a door-to-door tenor of 10 years and an average tenor of more than eight years. MUFG Bank and Sumitomo Mitsui Ban­king Corporation will support the transaction in equal participation as principal lenders for the facility.

IndiGrid and GRIL partner for po­wer transmission bids

India Grid Trust (IndiGrid) and GR Infra­projects Limited (GRIL) have announced a strategic partnership whereby an MoU has been signed to jointly bid for identified tariff-based competitive bidding transmission projects aggregating app­ro­xi­mately Rs 50 billion. Additionally, to co­mmence the partnership, IndiGrid and GRIL have entered into a framework ag­reement to acquire 100 per cent stake in Rajgarh Transmission Limited, which GRIL had won in March 2022. This project is part of the interstate transmission sy­stem and comprises a 400/220 kV substation at Rajgarh and a 400 kV double circuit line in Madhya Pradesh. GRIL will develop and execute the project, while In­diGrid will operate and manage the as­set post acquisition from GRIL on its co­mmercial operation date.

JSPL acquires Monnet Power for Rs 4.1 billion

Jindal Steel and Power Limited (JSPL) has acquired Monnet Power Company Li­mi­ted for Rs 4.1 billion through the in­solvency route. Monnet Power owns a 1,050 MW thermal power plant in Odi­sha. The new asset will provide power to JSPLs steel plant in Angul, which is in ex­pansion mode. The plant is an under-construction project and the company aims to make it operational within one year by infusing fresh investments.

Inox GFL Group raises around Rs 15 billion across entities to pare down debt

The Inox GFL Group has raised around Rs 15 billion across its entities to pare down debt. Of this, around Rs 7.4 billion has been raised through an initial public offering of Inox Green Energy Services Limited. The funds raised have been largely utilised towards debt re­­payment. Further, the promoters ha­ve re­cently raised Rs 7.2 billion throu­gh the sale of shares of Gujarat Fluoro­chemi­cals Limited. The sale proceeds of Rs 6.23 billion (net of expenses and taxes) have been infused in Inox Wind Limited.

Japanese government approves $500 million loan to decarbonise Indonesia (Indonesia)

The Government of Japan has approved loans of up to $500 million to expand the renewables and grid network capacity in Indonesia as part of its public-private decarbonisation initiative. The Asia Zero Emission Community initiative aims to enable Indonesia’s transition to sustainable sources of energy including solar, wind, hydrogen and ammonia. The fun­ds will be released to Peru­sa­ha­an Listrik Negara, a state-owned utility firm, with Nippon Export and Invest­ment Insuran­ce serving as the insurer. Around $200 million is expected to be assembled by March 2023.