×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

SEL achieves financial closure for Orissa plant

SEL achieves financial closure for Orissa plant
Comment E-mail Print Share
First Published: Mon, Jun 29 2009. 11 03 PM IST
Updated: Mon, Jun 29 2009. 11 03 PM IST
Mumbai: Sterlite Energy Ltd, or SEL, on Monday has achieved financial closure for its 2,400 MW power project at Jharsuguda in Orissa. Sterlite Industries (India) Ltd, which wholly owns SEL, said a consortium of 19 lenders led by the State Bank of India, or SBI, committed a term loan of Rs6,150 crore. SBI Capital Markets Ltd, IDBI Bank and Deutsche Bank acted as joint lead arrangers for the transaction.
The execution of the loan agreement was concluded Monday. SEL is part of Vedanta Resources Plc, a London-listed FTSE 100 diversified metals and mining firm.
This transaction is the largest syndicated term loan facility arranged for the Vedanta group from the Indian debt markets for a single project. The project envisages a total capital outlay of Rs8,200 crore, which is proposed to be funded through a combination of Rs6,150 crore of debt in Indian and foreign currency loans and Rs2,050 crore of equity. The equity component has already been contributed by Sterlite.
The term loan facility has a tenure of about 14 years and has been tied up through a consortium of 17 Indian banks, the Life Insurance Corporation of India and ECB financing from IIFC (UK) Ltd. The Indian rupee component has been structured on a floating rate interest linked to State Bank advance rate and the ECB component to LIBOR, or the London InterBank Offered Rate. The facilities are secured by the project assets. The project is expected to be fully commissioned by mid 2010.
Comment E-mail Print Share
First Published: Mon, Jun 29 2009. 11 03 PM IST