A Consortium of 23 Lenders led by the State Bank of India sanctioned Rupee Term Loan of Rs 10,057 crore on 26th March 2010 to Jindal Power Limited (JPL) for its 2400 MW Power Project being implemented at Raigarh, Chhattisgarh. The execution of loan agreements was concluded on 26th March, 2010 at a signing ceremony in New Delhi.
The project envisages a total outlay of Rs 13,410 Cr., which is to be funded in a debt equity ratio of 3:1 with a Rupee Term Loans of Rs. 10,057 Cr. and Equity/internal accruals of Rs. 3353 Cr.
Earlier JPL had implemented a 1000 MW Thermal Power Plant in 2008 at Tamnar, Chhattisgarh.
Under the transaction, SBI Capital Markets Ltd. (SBICAP) has implemented a unique two-tranche financing structure, so as to meet the requirements of both JPL and the lenders. Also, the transaction is a blend of Project Finance and conventional debt financing, arriving at an optimal risk allocation structure between JPL and the lenders. This accords more flexibility to JPL for its other borrowing programs by isolating the Project risk, and at the same time the lenders derive comfort from JPL balance sheet.
SBI Capital Markets Ltd (SBICAPS), ranked as No. 1 Mandated Lead Arranger in the Asia Pacific region and No. 1 in Global rankings as well, acted as sole financial advisor and arranger for this deal. The Term Loan facility having a door-to-door tenor of about 14 years has been tied up through a consortium of 23 Banks and Financial Institutions.
Disclaimer: “Jindal Power Limited is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India (“SEBI”), which is available on the website of SEBI at www.sebi.gov.in and the respective websites of the Book Running Lead Managers at www.jmfinancial.in,www.enam.com, www.db.com/india, www2.goldmansachs.com, www.icicisecurities.com, www.sbicaps.com, www.ubs.com/indianoffers and Co-book Running Lead Manager at www.motilaloswal.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled “Risk Factors” of the Draft Red Herring Prospectus. This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exception from registration.”
