Sterlite Power successfully concludes refinancing of Khargone Transmission Project for INR 1200 crores
- New financing secured from Aseem
Infrastructure Finance Limited, NIIF Infrastructure Finance Limited and
Aditya Birla Finance Limited.
Mumbai,
21 March 2022: Sterlite
Power, a leading power transmission developer and solutions provider, announced
the successful refinancing of its project loan for the recently commissioned
Khargone Transmission Project. The new financing from Aseem Infrastructure
Finance Limited (INR 525 cr), NIIF Infrastructure Finance Limited (INR 450 cr)
and Aditya Birla Finance Limited (INR 225 cr), will enable prepayment of the
existing project loan of approximately INR 1100 crores.
With this transaction, Sterlite
Power has achieved a reduction of almost 400 basis points in the interest cost
to be incurred by the project on a per annum basis, demonstrating the
considerably improved risk profile of the project post achievement of CoD (Date
of Commercial Operation). The refinancing of this critical inter-state
transmission project also highlights the keen interest of financial
institutions in funding power transmission projects with stable long-term cash
flows.
Mr. Pratik Agarwal, Managing Director, Sterlite Power, said, “This
transaction aligns well with our strategy and will provide greater financial
headroom to the business in the coming years. It is a testimony of the
continued trust reposed on us by the banking and investor community for our
ability to deliver challenging projects on time, while delivering strong
returns.”
Mr. Virender
Pankaj, CEO, Aseem Infrastructure Finance Ltd, said “Aseem
Infra is glad to have played the lead role in partnering Sterlite Power in
stitching the long-term debt financing for the project. The solution was
structured to balance the unique requirements of all the stakeholders while
ensuring a swift TAT. Aseem Infra firmly believes in collaboration and has
partnered with like-minded institutions for this transaction.”
Mr. Sadashiv Rao,
CEO, NIIF Infrastructure Finance Ltd, said “Khargone
Transmission project is playing a pivotal role in the country's inter-state
transmission network and is helping to meet energy
requirements and providing long-term energy security. NIIF IFL played a
lead role jointly with Aseem Infrastructure Finance Ltd to partner with
Sterlite Power. A structured solution for refinancing of the Project was
developed within strict timelines. This partnership is an important step in our
journey to facilitate the flow of long-term debt into infrastructure projects
in India.”
Mr. Tushar Shah, CEO
Infrastructure Finance, Aditya Birla Finance Limited,
said “ABFL is pleased to have bilaterally partnered with Sterlite Power for
part funding the overall refinance for Khargone Transmission Limited. This
underscores ABFL’s commitment over last many years of providing customized
financing solutions to Infrastructure sector clients.”
Khargone Transmission Project
achieved successful commissioning in December 2021. The project evacuates 1,320
MW of power generated by the Khargone Power Plant to 765 kV Khandwa substation
to further distribute it downstream across the western and central region in
India.
No comments