Adani Power on Thursday said it has consolidated standalone term loan facilities of its six Special Purpose Vehicles (SPVs) into a single long-term loan facility of ₹19,700 crore. 

“Consequent to the enhancement in the credit rating of Adani Power Ltd to AA-, which followed the amalgamation of its six Special Purpose Vehicles (“SPVs”) with itself, the company has consolidated the standalone term loan facilities of the SPVs into a single long-term Rupee term loan facility of ₹19,700 crore under a consortium financing arrangement comprising eight lenders,” the company stated in a filing with the stock exchanges.

“The revised arrangement will allow the company to benefit from uniform terms and greater financial flexibility in addition to reducing the effective rate of interest,” it added.

PPA with RIL

In a separate filing, Adani Power said its subsidiary, Mahan Energen Ltd (MEL), has entered into a 20-year long-term Power Purchase Agreement (PPA) with Reliance Industries (RIL) for 500 MW under the Captive User policy as defined under the Electricity Rules, 2005. 

“One unit of 600 MW capacity of MEL’s Mahan thermal power plant, out of its aggregate operating and upcoming capacity of 2,800 MW, will be designated as the captive unit for this purpose. In order to avail the benefit of this policy, RIL has to hold a 26 per cent ownership stake in the captive unit in proportion to the total capacity of the power plant. It will accordingly invest in 5,00,00,000 equity shares of MEL, aggregating to ₹50 crore for the proportionate ownership stake,” the company stated.

“This development brings between two corporates an exclusive arrangement for 500 MW of power purchase by RIL on long-term basis. In this connection, APL, MEL, and RIL have signed an Investment Agreement on March 27,” it added.

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