Debt Tie-up for 2400 MW Expansion Project at a Cost of Rs. 13,410 Cr. of Jindal Power Limited, Tamnar, District-Raigarh, Chhattisgarh
New Delhi, April 06, 2010: 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.
"The Company 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"). The Draft Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and the respective websites of the BRLMs at www.jmfinancial.in, www.enam.com, www.db.com/India, www.goldmansachs.com, www.icicisecurities.com, www.sbicaps.com, www.ubs.com indian offers and www.motilaloswal.com. Investors should note that investment in equity shares involves a high degree of risk and are requested to refer to the section titled "Risk Factors" of the DRHP for details of the same. These materials are not an offer for sale of the equity shares in the United States. The equity shares may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any portion of the offering in the United States or to conduct a public offering of Securities in the United States."