- Powergrid approves investments of over Rs 40 billion (India)
Power Grid Corporation of India Limited (Powergrid) has given approval for investments of Rs 40.71 billion for two projects. It has approved Rs 5.24 billion for the Eastern Region Expansion Scheme XXIX, and Rs 35.47 billion for the Transmission System for Kurnool Wind Energy Zone/ Solar Energy Zone–Part A and B. The former is scheduled to be commissioned by November 2025 and the latter by November 2024.
- Powergrid to raise Rs 9 billion via unsecured, non-convertible bonds
Powergrid has given its approval for raising Rs 9 billion via unsecured, non-convertible, non-cumulative, redeemable, taxable bonds. The bonds will be issued on a private placement basis through the securitisation of cashflows of 10 years (till 2032-33) of its operational special purpose vehicle, Powergrid Mithilanchal Transmission Limited. The base issue size is Rs 3 billion, with a greenshoe option of Rs 6 billion, taking the total issue size to Rs 9 billion. The bonds are redeemable at par in 40 equal installments with interest payments on a quarterly basis. It will be listed on the NSE and/or BSE Limited.
- PFC signs agreement with Japan’s JBIC for loan of Rs 1.65 billion
Power Finance Corporation Limited (PFC) has signed an agreement with the Japan Bank for International Cooperation (JBIC) for a project loan of JPY 2.65 billion (Rs 1.65 billion). Under this facility, JBIC has proposed to finance some of PFC’s projects that ensure effective reduction of greenhouse gas emissions and conservation of the environment. The deal was executed under a general agreement signed between PFC and JBIC for JPY 30 billion.
- IndiGrid completes acquisition of Khargone Transmission from Sterlite Power
India Grid Trust (IndiGrid) has completed the acquisition of 100 per cent shareholding and economic interest in Khargone Transmission Limited (KTL) from Sterlite Power Transmission Limited (SPTL). IndiGrid and SPTL signed the binding share purchase agreement for the acquisition on January 21, 2023. IndiGrid received its unitholders’ approval on February 23, 2023. Acquired at an enterprise value of around Rs 15 billion, the addition of KTL to its portfolio will take IndiGrid’s assets under management to about Rs 227 billion and its overall asset base to 8,416 ckt. km of transmission lines and around 17,550 MVA of transformation capacity. The acquisition was funded through a combination of equity, internal accruals and debt.
- IREDA granted infrastructure finance company status by RBI
The Reserve Bank of India (RBI) has granted the Indian Renewable Energy Development Agency (IREDA) the status of an infrastructure finance company. With this, IREDA will be able to take greater exposure in renewable energy financing and access a wider investor base for fund mobilisation, resulting in competitive rates for fund raising. In another development, the Cabinet Committee on Economic Affairs has approved the listing of IREDA on the stock exchanges through an initial public offering (IPO). This will be done through part sale of the government’s stake in it and the issue of fresh equity shares. The Department of Investment and Public Asset Management will drive the listing process.
- Vena Energy announces financial closure of the 176 MW Gudadur hybrid power project
Vena Energy has reached financial closure for the 176 MW solar-wind hybrid Gudadur project in Karnataka. The project will comprise 48 MW of solar capacity and 128 MW of wind capacity, and is expected be commissioned by the fourth quarter of 2023. This is Vena Energy’s first green project financing arrangement in India and is supported by five mandated lead arrangers, Hongkong and Shanghai Banking Corporation Limited (HSBC), BNP Paribas Bank, Mizuho Bank Limited (Mizuho), Sumitomo Mitsui Bank Corporation (SMBC), and Axis Bank Limited. BNP Paribas, Mizuho and SMBC acted as the green loan coordinators, while HSBC acted as the account and modelling bank, and Axis Bank acted as the lenders’ agent.
- Essar to invest $3.6 billion in energy transition in the UK and India
The Essar Group has announced the formation of Essar Energy Transition (EET) to drive energy transition. EET plans to invest $3.6 billion in developing a range of low-carbon energy transition projects over the next five years, of which $2.4 billion will be invested in its site at Stanlow (in the UK), between Liverpool and Manchester, and $1.2 billion will be invested in India. EET will invest in developing a cost-efficient global supply hub for low-carbon fuels in India, including green hydrogen and green ammonia. Ammonia will be shipped from India to the UK, Europe and globally to meet the expanding market demand for green hydrogen. EET’s investment in India will also help deliver on the country’s emerging hydrogen ambition.
- PLN secures loan from Japanese banks for renewable energy projects in Indonesia (Indonesia)
Perusahaan Listrik Negara (PLN) has secured $200 million in loans from Nippon Export and Investment Insurance, a company owned by the Government of Japan, to develop renewable energy projects in Indonesia. The loans will support PLN’s transition from coal-fired power plants to renewable energy sources such as solar and geothermal energy from 2025. The funds will be used to advance research and development as well as to purchase electricity from renewable energy producers.