Sterlite Power Successfully Concludes Refinancing of Khargone Transmission Project for INR 1200 Crores

New Delhi [India], March 21 (ANI/NewsVoir): Sterlite Power, a leading power transmission developer and solutions provider, announced the successful refinancing of its project loan for the recently commissioned Khargone Transmission Project.
The new financing from Aseem Infrastructure Finance Limited (INR 525 cr), NIIF Infrastructure Finance Limited (INR 450 cr) and Aditya Birla Finance Limited (INR 225 cr), will enable prepayment of the existing project loan of approximately INR 1100 crores.
With this transaction, Sterlite Power has achieved a reduction of almost 400 basis points in the interest cost to be incurred by the project on a per annum basis, demonstrating the considerably improved risk profile of the project post achievement of CoD (Date of Commercial Operation). The refinancing of this critical inter-state transmission 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, "This transaction aligns well with our strategy and will provide greater financial headroom to the business in the coming years. It 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, while delivering strong returns."
Virender Pankaj, CEO, Aseem Infrastructure Finance Ltd., said, "Aseem Infra is glad to have played the lead role in partnering Sterlite Power in stitching the long-term debt financing for the project. The solution was structured to balance the unique requirements of all the stakeholders while ensuring a swift TAT. Aseem Infra firmly believes in collaboration and has partnered with like-minded institutions for this transaction."
Sadashiv Rao, CEO, NIIF Infrastructure Finance Ltd., said, "Khargone Transmission project is playing a pivotal role in the country's inter-state transmission network and is helping to meet energy requirements and providing long-term energy security. NIIF IFL played a lead role jointly with Aseem Infrastructure Finance Ltd to partner with Sterlite Power. A structured solution for refinancing of the Project was developed within strict timelines. This partnership is an important step in our journey to facilitate the flow of long-term debt into infrastructure projects in India."
Tushar Shah, CEO Infrastructure Finance, Aditya Birla Finance Limited, said, "ABFL is pleased to have bilaterally partnered with Sterlite Power for part funding the overall refinance for Khargone Transmission Limited. This underscores ABFL's commitment over last many years of providing customized financing solutions to Infrastructure sector clients."
Khargone Transmission Project achieved successful commissioning in December 2021. The project evacuates 1,320 MW of power generated by the Khargone Power Plant to 765 kV Khandwa substation to further distribute it downstream across the western and central region in India.
Sterlite Power is a leading private sector power transmission infrastructure developer and solutions provider with projects covering approximately 13,700 circuit kms of transmission lines across India and Brazil. The Company has a portfolio of high-performance power conductors, extra high voltage (EHV) cables and optical ground wires (OPGW). The Company provides bespoke solutions for the upgrade, uprate and fiberization of existing transmission infrastructure projects. It was the sponsor of IndiGrid, India's first power sector InvIT, listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The Company was also recognised at The Economic Times Innovation Awards 2020 and is a recipient of awards from International Project Management Association (IPMA).
For more details, please visit www.sterlitepower.com.
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