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Sterlite Power recently said HDFC Bank has refinanced a loan for its Gurgaon Palwal Transmission Ltd. project, leading to around 300 basis points reduction in the interest cost. The project became fully operational in April 2020.
The new financing to prepay the existing project loan of Rs. 800 crore has been arranged by HDFC Bank, Sterlite Power said in a statement.
The new facility has been availed at significantly favourable terms demonstrating the considerably improved risk profile of the project post achievement of CoD (Date of Commercial Operation).
With this transaction, Sterlite Power has achieved a reduction of almost 300 basis points in the interest cost to be incurred by the project on a per annum basis.
The refinancing of this critical ISTS (Interstate Transmission System) project also highlights the keen interest of financial institutions in funding power transmission projects with stable long-term cash flows.
Pratik Agarwal, Managing Director, Sterlite Power, said that the refinancing is a "testimony of the continued trust reposed on us by the banking and investor community for our ability to deliver challenging projects on time, with the highest standards of quality and safety, while delivering strong returns".
Successfully commissioned in the month of April 2020, the GPTL project connects 2,000 MW additional power to Gurugram and Palwal areas in the state of Haryana. Apart from making Gurugram DG-set free, this project will enable access to reliable power for more than 3 million households in the state.
This project has implemented Indias first vertical GIS substations built at Prithla, Kadarpur and Sohna.
Apart from saving land, this innovation has resulted in offsetting more than 18,000 tons of CO2 emissions each year as compared to conventional layout of a similar GIS substation. |
