Financial Briefs: India and overseas

Powergrid approves plan to issue bonds in tranches to raise up to Rs 57 billion

Power Grid Corporation of India Li­mited (Powergrid) has approved a plan to issue bonds on a private placement basis in nu­merous tranches in 2023-2024, in order to raise up to Rs 57 billion. The funds raised will be utilised for partially financing the company’s capex requirements, providing inter-corporate loans to fully-owned subsidiaries and general corporate purposes. This will be done by securing the cashflows of four operational special purpose vehicles – Power Grid Khetri Trans­mission System Limi­ted, Power Grid Bhuj Transmission Limited, Power Grid Varanasi Transmis­sion System Limited and Power Grid Medinipur Jeerat Trans­mission Limited. The base issue size is Rs 5 billion with a further Rs 14 billion as a greenshoe option.

Adani Energy Solutions secures $1 billion financing for green HVDC link project in Mumbai

Adani Energy Solutions Limited has an­nounced the successful financial closure of its $1 billion green high voltage direct current (HVDC) link project, which will enable further greening of the Mumbai grid by supplying more renewable power to the city while supporting its rising electricity demand. The credit facility is part of the $700 million revolving project finance facility tied up in October 2021 for Adani Energy’s under-construction tra­ns­mission assets portfolio. This uni­que platform is an infrastr­­uc­ture financing framework that funds various under-construction assets and offers projects access to funds that another project in the portfolio has paid back. The HVDC transmission link will bulk inject an additional 1,000 MW of renewable power into the city, thus ensuring uninterrupted power supply in future. The construction work for this 80 km link will begin in October 2023.

Apraava Energy secures funding from REC and PFC for its wind, transmission and advanced metering projects

Apraava Energy has signed a memoranda of understanding with REC Limited and Power Finance Corporation Limited (PFC) for financial assistance worth Rs 91.2 billion. The funding will be used to develop Apraava’s wind, transmission and advanced metering infrastructure projects in the country. This milestone re­affirms Apraava’s sharp focus on gro­wth in green and low-carbon businesses, and alignment with India’s energy transition goals.

Adani New Industries raises $394 million for solar module manufacturing

Adani New Industries Limited (ANIL), a subsidiary of Adani Enterprises Limi­ted, has raised a trade finance facility worth $394 million from Barclays Plc and De­utsche Bank. The funds will be utilised to meet the working capital re­q­uirements of ANIL’s solar module manufacturing facility. Notably, ANIL aims to es­tablish a comprehensive eco­system for green hydrogen, incorporating solar module and wind turbine manufacturing.

Inox Wind promoters infuse Rs 5 billion in the company for repayment of debt

Inox Wind Limited (IWL) has anno­unced the infusion of Rs 5 billion (be­fore taxes and other charges) by its ­pro­moter and promoter group entities for the repayment of debt. The funds were raised by way of a sale of equity shares in IWL by its promoter and promoter group entities, through block deals on the stock exchanges. The funds will be utilised for the repayment of IWL’s existing debt.

Shell Energy to invest Rs 35 billion in renewable energy, EV charging stations and an LNG terminal

Shell Energy India Private Limited has entered into an MoU with the Gujarat government to invest Rs 35 billion in the state to set up a renewable energy facility, charging stations for electric vehicles (EVs), and a liquefied natural gas (LNG) regasification terminal. Under this MoU, Shell Energy will invest Rs 22 billion to set up a plant for renewable energy production in Banaskantha, North Gujarat. The plant is expected to commence co­mmercial production by 2026. In addition, Shell Energy will invest Rs 8 billion in setting up fuel retailing EV recharge stations in various locations across the state. This project is expected to be operational by 2027.

Abu Dhabi’s ADFD funds US$ 105.4 million project in Tanzania

The Abu Dhabi Fund for Development (ADFD) has signed a loan agreement for AED 387 million with the Tanzanian government for a power project to enhance the country’s energy security. The project’s primary objective is to fully connect the Kagera administrative region to the national electricity grid, reduce reliance on energy imports from Uganda, and provide sustainable and secure electricity sources for local communities, economic zones and service facilities.