Kotak Strategic Situations India Fund II (KSSF II) and Kotak Private Credit Fund (KPCF), managed by Kotak Investment Advisors Limited (KIAL), have invested ₹732 crore in the non-convertible debentures of RattanIndia Power Limited (RIPL). This investment is part of the total investment of ₹1,125 crore by a consortium of lenders.
KSSF II and KPCF invested ₹582 crore and ₹150 crore, respectively in RIPL. The power company will utilise the proceeds to refinance its existing debt.
The fundraising is structured to match the expected cash flow generation and reduce overall cost.
Srini Sriniwasan, Managing Director, Kotak Investment Advisors said the financing provided by the credit funds underscores the ability to move with agility and provide timely structured financing to meet specific needs. This is the first investment from their new credit funds which have participated across the capital stack for appropriate risk adjusted returns.
Eshwar Karra, CEO, Kotak Investment Advisors said this investment is in line with the fund’s objective of providing solution capital to businesses needing patient funding.
RIPL is a part of the RattanIndia Group promoted by Rajiv Rattan. It operates a thermal power plant with an operational capacity of 1,350 MW at Amravati in Maharashtra.