Nava Bharat Ventures zooms 20% as arm achieves financial closure for a project

Maamba Collieries has achieved financial closure of its integrated coal & power project of an estimated cost of USD 828 million.

Shares of Nava Bharat Ventures has locked in upper circuit of 20% at Rs 169 on the BSE after the company announced that its step-down subsidiary Maamba Collieries (MCL) has achieved financial closure of its integrated coal & power project of an estimated cost of USD 828 million (approx. Rs 5,300 crore).

Large international lenders group, comprising Development Financial Institutions from South Africa and large international commercial banks from Africa and China, have participated in this limited recourse project finance deal, Nava Bharat Ventures said in a press release.

It is the first project in Africa to have obtained insurance cover from China Export & Credit Insurance Corporation (SINOSURE), it added.

This project is being funded on a debt equity ratio of 70:30.

Nava Bharat (Singapore) holding about 65% and ZCCM-IH holding 35% of stakes in MCL, fully discharged their respective equity commitments to the project.

The company said, the project has already achieved 80% of progress in all facets of implementation and is scheduled for commissioning by mid 2016.

Till 12:45 PM, a combined 219,739 shares changed hands and there were pending buy orders for 159,656 shares on the BSE and NSE.