PFC secures foreign currency term loan of $1.26 billion (India)
Power Finance Corporation Limited (PFC) has secured a foreign currency term loan of $1.26 billion, marking the largest such loan ever raised by an Indian PSU. This loan was arranged through a facility agreement with multiple banks at IFSC GIFT City, Gandhinagar, to fund green energy projects outside the thermal generation sector. The loan carries a floating interest rate of 4.21 per cent per annum and a tenor of five years. The banks involved in the loan include the State Bank of India (SBI), IDBI, Axis, MUFG, Deutsche and SMBC, with SBI acting as the primary lender and facility agent.
REC raises $500 million through green bonds to support renewable energy projects
REC Limited has raised $500 million through green dollar bonds for renewable energy projects. The five-year note has a coupon rate of Rs 4.75 per cent per annum, payable semi-annually, with a maturity date of September 27, 2029. This marks the first US dollar bond issuance by an Indian public sector enterprise in 2024. This issuance is part of the company’s $10 billion global medium-term programme. In line with REC’s Green Finance Framework, the funds raised will be used to finance eligible green projects, adhering to the green bond principles of the Climate Bond Initiative in London and the Reserve Bank of India’s ECB guidelines.
IFC provides $500 million loan to Axis Bank for increasing green financing
The International Finance Corporation (IFC) has partnered with Axis Bank for a $500 million loan to scale up green finance in India and develop the blue finance market. The funds will support projects in offshore renewable energy and water waste management, among others. Further, the loan will enhance financing for climate projects across India, with an emphasis on green buildings that mitigate climate change impacts and generate employment.
AESL signs SPAS with PFC Consulting to acquire NTL and JTL
Adani Energy Solutions Limited (AESL) has signed share purchase agreements (SPAs) with PFC Consulting Limited to acquire 100 per cent equity shares in Navinal Transmission Limited (NTL) and Jamnagar Transmission Limited (JTL). NTL’s project involves the establishment of the 4×1,500 MVA, 765/400 kV Navinal substation with gas-insulated switchgear (GIS) technology, along with reactors and a 129 km (515 ckt km) transmission line. JTL’s project includes the development of a 2×1,500 MVA, 765/400 kV Jamnagar substation with GIS technology, along with reactors, a 330 km (941 ckt km) transmission line and a ±400 MVAr statcom with associated MSC and MSR systems at the Jamnagar 400 kV bus section.
Adani Group merges two subsidiaries with ANIL
The Adani Group has merged two of its step down subsidiaries – Adani Infrastructure Private Limited and Mundra Solar Technology Limited – with Adani New Industries Limited (ANIL), a wholly owned subsidiary of Adani Enterprises Limited. This merger is aimed at strengthening ANIL’s focus on low-carbon initiatives, including green hydrogen projects and the manufacturing of wind turbines and solar modules. Mundra Solar Technology is engaged in the production, collection and distribution of electricity, enhancing ANIL’s solar manufacturing capabilities. ANIL operates across the energy, utilities, transportation, logistics and incubation sectors globally. It has operational facilities capable of manufacturing 4 GW of solar photovoltaic (PV) modules, with integrated production capacities of 4 GW for solar PV cells and 2 GW for ingot and wafer production. It also has wind turbine generator manufacturing capabilities. TotalEnergies holds a 25 per cent equity stake in ANIL, while Adani Enterprises Limited owns the remaining 75 per cent.
Vikram Solar files DRHP with SEBI for IPO
Vikram Solar has filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The IPO will consist of a fresh issue of shares worth up to Rs 15 billion, along with an offer for sale of up to 17.45 million equity shares by the company’s promoter group. The IPO includes a reserved portion for eligible employees, with a discount on shares for employees participating in the subscription. It has a face value of Rs 10 per equity share.
IREDA receives approval from DIPAM and MNRE to create retail subsidiary
Indian Renewable Energy Development Agency Limited (IREDA) has received approval from the Department of Investment and Public Asset Management (DIPAM) and the Ministry of New and Renewable Energy (MNRE) to create a wholly owned retail subsidiary. The new subsidiary will focus on handling the retail business under key government schemes such as PM-Surya ghar and PM-KUSUM.
World Bank approves $250 million to support Lebanon’s clean energy and grid services (Lebanon)
The World Bank’s board of executive directors has approved a $250 million project to expand renewable energy in Lebanon by restoring electricity grid reforms. The project aims to strengthen Lebanon’s state-owned Electricité du Liban’s (EDL’s) operational and commercial systems, increase the supply of grid-connected renewable energy and reinforce the network. Key initiatives include the development of a grid-connected solar PV plant, rehabilitation of the Litani River Authority hydropower plant, and rehabilitation and reinforcement of the EDL transmission network.