RPower secures $5 bn funding from US Exim Bank

Anil Ambani-led Reliance Power today announced a deal to secure $5 billion (nearly Rs 22,000 crore) in funding from the US Export Import Bank for gas-based and renewable energy projects totalling about 9,000 MW here.

The deal, which coincides with the three-day visit of US President Barack Obama to India, was signed by Reliance Power Chairman Anil Ambani and Exim Bank Chairman and President Fred Hochberg last evening.

RPower also had announced a deal yesterday in the presence of Obama to procure equipment worth about Rs 10,000 crore from General Electric and other US companies for its various power and coal mining projects.

"As we look to India today, the United States sees an opportunity to sell our exports in one of the fastest growing markets in the world. For America this is a jobs strategy," Obama had said on the occasion.

Commenting on the commercial deals between the two companies of the two nations and totalling $10 billion and with job creation potential of 50,000, Obama had said this was barely scratching the potential and dubbed India as the market of the future.

Under the MoU, "Exim Bank will make available up to $5 billion in support of purchases of US goods and services for the group's various projects including among others 900 MW of renewable power generating technology (solar and wind) and up to 8,000 MW of gas fired thermal electric generating technology," the company said in a statement here.

"This is defining moment in Indo-US energy cooperation," ADA Group Chairman Anil Ambani had said after signing the deal with General Electric Chairman Jeff Immelt yesterday.

On the $5 billion Exim Bank financing deal, RPower said this would be in addition to the $917 million from secured in October this year to finance its facility in Sasan, where the company is undertaking a 4,000 MW ultra mega power project.

The company said the MoU would enable RPower and its affiliates access Exim Bank's long term loans at a substantially reduced processing time.

"Considering that Exim Bank exposure to India has been primarily limited to public sector, execution of the MoU is a landmark event that would go a long way in increasing diversity of lenders that could provide long term finance to India's private sector," it said.

The company said that purchase of goods and services by Reliance Power and its affiliates that are financed by Exim Bank would provide international quality products and services to its projects at competitive terms and will create jobs in the manufacturing and services sector in the US.