Sterlite Power has successfully concluded refinancing the Khargone transmission project, which would help it to pre-pay the project loan.
The new financing from Aseem Infrastructure Finance Ltd (₹525 crore), NIIF Infrastructure Finance Ltd (₹450 crore) and Aditya Birla Finance Ltd (₹225 crore), will enable prepayment of the existing project loan of approximately ₹1,100 crore, the company said in a statement.
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 commercial operations.
The refinancing of this critical interstate transmission project also highlights the keen interest of financial institutions in funding power transmission projects with stable long-term cash flows, the statement said.
Pratik Agarwal, Managing Director of Sterlite Power, said, “this transaction aligns well with our strategy and will provide greater financial headroom to the business in the coming years”.
Virender Pankaj, CEO of Aseem Infrastructure Finance, said the solution was structured to balance the unique requirements of all the stakeholders while ensuring a swift turnaround time.
Sadashiv Rao, CEO of NIIF Infrastructure Finance, said 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.”
Tushar Shah, CEO of Infrastructure Finance, Aditya Birla Finance, said the transaction underscores the company’s commitment over the last many years of providing customised 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 (Madhya Pradesh) to 765 kV Khandwa substation to further distribute it downstream across the western and central regions in India.
