By OUR STAFF REPORTER
Shimla, 29 Dec: SJVN has secured Rs 10,000 Crores (US $ 1.2 Billion) Construction Finance Facility to fund its upcoming renewable power projects from a group of leading domestic and international lenders. The Construction Finance Facility is a unique and first of its kind transaction undertaken by a PSU entity and Public Sector Banks.
According to SJVN CMD Nand Lal Sharma, SJVN Green Energy Limited (SGEL), a wholly owned subsidiary, undertook this initiative in association with SBI Capital Markets Ltd (SBI CAPS). SBI CAPS acted as the sole advisor and arranger for the transaction on behalf of SGEL. Construction Finance attracted tremendous response from lenders and was over-subscribed.
After detailed discussions and deliberations proposals from five banks, namely Deutsche Bank, State Bank of India, Punjab National Bank, Bank of India and MUFG Bank were accepted. This credit facility is of revolving nature that allows SJVN to draw down funds on an ongoing basis as per the construction requirements of its projects. This facility will enable SJVN fast-track the development of its under-construction RE projects. The facility will enable SJVN contribute its bit towards Government of India’s target of achieving 500 GW Renewable Energy by 2030.
Sharma applauded the efforts of SBI CAPS and Team SJVN in achieving this feat of making finance readily available for all the upcoming RE projects of SJVN. He further elaborated that the construction financing facility shall be deployed strategically to develop state-of-the-art solar and wind energy projects across India. These projects are expected to create employment opportunities, boost the local economies and contribute significantly in harnessing renewable energy.
The details of this first of its kind transaction undertaken by a PSU entity and Public Sector Banks have been declared in an event organised by SBICAPS. Also present were Geeta Kapur, Director (Personnel), SJVN, Akhileshwar Singh, Director (Finance), and Mukul Modi, Executive Vice President, SBI CAPS. The event was also attended by senior officials from SJVN, SGEL, SBICAPS and the Syndicating Banks.
Currently SJVN’s RE portfolio stands at 5090.5 MW out of which 179.5 MW is under operation, 1860 MW is under construction and 3051 MW is under various stages of implementation.
