Adani Transmission plans to raise $1.15 bn to finance projects
POWER & RENEWABLE ENERGY

Adani Transmission plans to raise $1.15 bn to finance projects

Power transmission major Adani Transmission Ltd plans to raise $1.15 billion through offshore loans to fund at least four projects in Gujarat and Maharashtra to support the economy amid the second wave of Covid-19.

Sources told the media that the four banks, including Standard Chartered, Mitsubishi UFJ Financial Group (MUFG), Barclays bank Ltd, and JPMorgan Chase and Corporation, are expected to syndicate the proposed loans.

Further, they added that the company is working on a dedicated structure through which the total sum will be raised for those four projects.

The four projects include the Western Region Strengthening Scheme (WRSS), Lakadia Banaskantha Transco (LBTL), Kharghar Vikhroli Transmission (KVTL), and the Mumbai High Voltage Direct Current (HVDC) project.

Total project value is about $1.55 billion, with the HVDC project constituting approximately one-third of that. The loan could primarily be for five years and valued after adding a spread, or mark-up, to the London Interbank Offered Rate (LIBOR).

The spread will be finalised after factoring in project execution and refinancing risks of the lenders, who are cautious regarding the economic value of Covid-19.

A senior executive said that the proceeds will fund the first three projects fully and the fourth project partially. The Ahmedabad-based company is, though, expected to refinance the loan after 12-15 months by long-term overseas bonds.

Adani Transmission will initially raise about $700 million from a group of foreign lenders, who will later extend another $450 million credit line to HVDC, which has a deadline of January 2025.

The second leg of the credit line may happen at the time of refinancing the following year, for which a deal is being finalised presently. One-fourth of the entire project value will be infused through equity by Adani’s promoters.

In the past year, Adani Transmission shares have risen around six times on the Bombay Stock Exchange (BSE).

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Also read: PowerGrid hands over nine ICU ventilators to the tune of Rs 1.14 cr

Also read: Ramco Cements sets up medical oxygen plant in Tamil Nadu

Power transmission major Adani Transmission Ltd plans to raise $1.15 billion through offshore loans to fund at least four projects in Gujarat and Maharashtra to support the economy amid the second wave of Covid-19. Sources told the media that the four banks, including Standard Chartered, Mitsubishi UFJ Financial Group (MUFG), Barclays bank Ltd, and JPMorgan Chase and Corporation, are expected to syndicate the proposed loans. Further, they added that the company is working on a dedicated structure through which the total sum will be raised for those four projects. The four projects include the Western Region Strengthening Scheme (WRSS), Lakadia Banaskantha Transco (LBTL), Kharghar Vikhroli Transmission (KVTL), and the Mumbai High Voltage Direct Current (HVDC) project. Total project value is about $1.55 billion, with the HVDC project constituting approximately one-third of that. The loan could primarily be for five years and valued after adding a spread, or mark-up, to the London Interbank Offered Rate (LIBOR). The spread will be finalised after factoring in project execution and refinancing risks of the lenders, who are cautious regarding the economic value of Covid-19. A senior executive said that the proceeds will fund the first three projects fully and the fourth project partially. The Ahmedabad-based company is, though, expected to refinance the loan after 12-15 months by long-term overseas bonds. Adani Transmission will initially raise about $700 million from a group of foreign lenders, who will later extend another $450 million credit line to HVDC, which has a deadline of January 2025. The second leg of the credit line may happen at the time of refinancing the following year, for which a deal is being finalised presently. One-fourth of the entire project value will be infused through equity by Adani’s promoters. In the past year, Adani Transmission shares have risen around six times on the Bombay Stock Exchange (BSE). Image Source Also read: PowerGrid hands over nine ICU ventilators to the tune of Rs 1.14 cr Also read: Ramco Cements sets up medical oxygen plant in Tamil Nadu

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