Financial Briefs

India and overseas

  • RBI issues first tranche of sovereign green bonds (India)

The government issued the first Rs 80 billion tranche of sovereign green bon­ds on January 25, 2023. The first tranche included Rs 40 billion each of 10-year and 5-year notes with a cut-off price of 7.29 per cent and 7.1 per cent respectively. The proceeds will be deployed in public sector projects that will help in reducing the carbon intensity of the economy. The second Rs 80 billion tranche of green bonds will be issued on February 9, 2023.

  • Tata Power raises Rs 10 billion capital through the issuance of NCDs

Tata Power Company Limited has raised Rs 10 billion through the issuance of un­secured, redeemable, rated, listed, taxable, non-convertible debentures (NCDs) on a private placement basis. The maturity of Series I NCDs worth Rs 5 billion is scheduled for January 8, 2030, while the maturity of Series II NCDs worth Rs 5 billion is scheduled for December 29, 2032. These are fixed rate NCDs with an annual coupon payment.

  • Japan’s MUFG Bank extends a Rs 4.5 billion sustainable trade finance facility to Tata Power

MUFG Bank Limited (MUFG) has executed a Rs 4.5 billion sustainable trade finance facility for Tata Power. This is the first sustainable trade finance facility offered by MUFG in India. The credit facility was extended by MUFG for funding the procurement of two solar power projects under TP Kirnali Limited (TPKL). The projects are a 100 MW project in Parthur, Maharashtra and a 120 MW project in Mesanka, Gujarat, under documentary trade finance. Incor­porated in 2020, TPKL is a 100 per cent owned subsidiary of Tata Power Rene­wable Energy Limited.

  • NCLT approves merger of JMC Projects with Kalpataru Power Transmission

The National Company Law Tribunal (NCLT) has approved the scheme of am­al­gamation of JMC Projects (India) Li­mited with Kalpataru Power Transmi­s­sion Limited (KPTL). The combined entity will have a significant presence in India and projects in 67 countries, with offerings in well diversified areas including power transmission and distribution, bu­ildings and factories, water, railways, oil and gas, and heavy civil infrastructure. The board of directors of KPTL and JMC approved the amalgamation scheme in February 2022.

  • CCEA approves Rs 26.15 billion investment for Sunni Dam hydropower project in Himachal Pradesh

SJVN Limited has announced that the Cabinet Committee on Economic Affairs (CCEA) has approved the investment for the 382 MW Sunni Dam hydroelectric project in Himachal Pradesh, for an estimated cost of Rs 26.15 billion, including Rs 138 million as budgetary support from the Government of India for enabling infrastructure. Ex-post facto approval has been given for cumulative expenditure incurred amounting to Rs 2.46 billion till January 2022. The project cost includes hard costs of Rs 22.46 billion, interest du­ring construction and financing char­ges of Rs 3.59 billion and Rs 91.5 million res­pectively.

  • Sterlite Power secures Rs 3.05 billion funding from Aseem Infrastructure Finance for KTL

Sterlite Power has achieved financial closure for its Kishtwar Transmission Limi­ted (KTL) project located in Jammu & Kashmir. It has successfully secured the entire debt funding of Rs 3.05 billion from Aseem Infrastructure Finance Limited – a non-banking finance company- infrastructure finance company – promoted by the Strategic Opportunity Fund of the National Investment and Infrastructure Fund, with anchor investments from the Government of India and Japan’s Sumito­mo Mitsui Banking Corporation. Notably, Sterlite Power acquired the KTL special purpose vehicle in December 2022 to ex­e­cute the ISTS project.

  • Norway’s Climate Investment Fund invests Rs 900 million in Karnataka’s transmission project

The new Norwegian Climate Investment Fund, managed by Norfund, together with KLP, has made the first investment of Rs 900 million in an Indian transmission project in Karanataka, being developed by ReNew Power. Norfund and KLP will invest around Rs 900 million for a 49 per cent ownership stake in ReNew’s transmission project in Koppal, Karnataka with ambitions for further joint investments. Commercial operations of the project are expected to start in the first quarter of 2023-24.

  • World Bank approves $311 million for renewable energy projects in West Africa

The International Development Asso­cia­­tion, the concessional financing arm of the World Bank, has allocated $311 million under the Regional Emergency Solar Power Intervention Project (RESPITE). The project is aimed at str­engthening regional integration in Ch­ad, Liberia, Sierra Leone and Togo, and increasing grid-connected renewable energy capacity. A $20 million grant is also included to support potential re­gio­nal power trade and build the institutional and technical capabilities of the West Africa Power Pool to undertake its regional mandate. RESPITE will fin­ance the construction and operation of about 106 MW of solar photovoltaic ca­pacity with battery energy storage systems, and 41 MW expansion of hydroelectric capacity. It will also support el­ectricity distribution and transmission projects in all four nations.