Financial Briefs: India and overseas

Torrent Power raises Rs 6 billion through NCDs

Torrent Power Limited has raised Rs 6 billion through the issuance of non-convertible debentures (NCDs) on private placement basis. The company has issued and allotted Series 11, that is, 60,000 secured, rated, listed, taxable, non-cumulative, redeemable NCDs at a coupon rate of 8.5 per cent per annum. It is proposed to be listed on the wholesale debt market segment of National Stock Exchange of India Limited. Notably, Torrent Power has an aggregate installed generation capacity of 4.1 GW, which consists majorly of clean generation sources such as gas (2.7 GW) and renewables (1.07 GW).

Amp Energy India secures $250 million in funding from SMBC, ICG and AIIB for renewable energy expansion

Amp Energy India has secured up to $250 million in funding to support its growth. The investment comes from financial institutions, including Sumitomo Mitsui Banking Corporation Bank of Japan (SMBC), the Intermediate Capital Group (ICG) and the Asian Infrastructure Investment Bank (AIIB). Amp Energy India’s portfolio spans 17 states in India, with a total capacity exceeding 2.7 GW.

Adani Transmission gets shareholders’ approval to raise up to Rs 85 billion

Adani Transmission Limited has received shareholders’ approval to raise up to Rs 85 billion through the issuance of equity shares on qualified institutional placement basis. The company had sought shareholders’ approval through postal ballot to raise up to Rs 85 billion by way of qualified institutional placement through the issuance of equity shares and/or other eligible securities to eligible investors on May 15, 2023.

MoF provides financial incentives to states to accelerate power sector reforms

The Ministry of Finance (MoF) has taken measures to promote power sector reforms at the state level by providing financial incentives through additional borrowing permissions. Based on recommendations of the Ministry of Power, the MoF granted permission to 12 state governments to implement reforms during 2021-22 and 2022-23. Over the past two financial years, they have been allowed to raise financial resources of Rs 664.13 billion through additional borrowing permissions. The objective is to encourage and support the states in undertaking reforms to enhance the efficiency and performance of the power sector. Notably, an amount of Rs 1,433.32 billion will be available to states as an incentive for undertaking these reforms in 2023-24.

Kotak Credit Funds invest Rs 7.32 billion in RattanIndia Power

Kotak Strategic Situations India Fund II (KSSF II) and Kotak Private Credit Fund (KPCF), managed by Kotak Investment Advisors Limited, has announced its investment of Rs 7.32 billion in the NCDs of RattanIndia Power Limited (RIPL). The investment is part of a total investment of Rs 11.25 billion by a consortium of lenders. KSSF II and KPCF invested Rs 5.82 billion and Rs 1.5 billion, respectively, in RIPL. The power company will utilise the proceeds to refinance its existing debt.

IND Renewable Energy’s board approves proposal to raise Rs 260 million via rights issue

IND Renewable Energy Limited’s board has approved the proposal to raise funds of up to Rs 260 million through a rights issue. This is in modification of the company’s earlier communication in March 2023, wherein the company’s board had approved a proposal to raise funds of up to Rs 150 million by way of issue of shares on preference basis/rights issue. The terms of the Rs 260 million issue will be decided by the board later.

Genus signs agreement with DFC for $49.5 million funding

Genus Power Infrastructures Limited, a metering solutions provider and manufacturer, has signed a commitment letter with the United States International Development Finance Corporation (DFC) to obtain a loan of up to $49.5 million to scale up the deployment of electric smart meters across India, supporting energy security and transition through grid optimisation and efficiency. With this partnership, Genus is well poised to become a leading player in the advanced metering infrastructure service provider market

Kazakhstan’s KEGOC secures ADB funding for 500 kV project

Kazakhstan’s grid developer, the JSC Kazakhstan Electricity Grid Management Company (KEGOC) has signed a mandate letter with the Asian Development Bank (ADB) to finance the South Kazakhstan Electricity Transmission Reinforcement Project. The project’s first stage involves the construction of the 500 kV Shu-Zhambyl and Zhambyl-Shymkent transmission lines, along with rehabilitation and extension of three 500 kV substations – Shymkent, Zhambyl and Shu. The feasibility study had been approved by the government earlier in February 2023. The project will also involve reinforcing the 220 kV network of the Almaty power region. The initial stage is anticipated to be financed with 30 per cent equity and 70 per cent debt. The entire project will be operational in 2028.