Mumbai: Indian utility Tata Power Co Ltd has refinanced nearly 90% of a $950 million bridge loan it had taken for acquiring 30% stakes in two Indonesian coal mines in 2007.
It did not disclose the interest rate on the refinanced long-term loan for $850 million, but Managing Director Prasad Menon said in a statement it was at a “competitive pricing”.
The utility, which is part of India’s salt-to-software Tata Group, had bought equity stakes in two coal mines owned by Indonesia’s largest coal producer PT Bumi Resources for $1.3 billion.
It said the refinancing facility included a non-recourse loan of $580 million for six years, while the remainder was a recourse loan for seven years. A non-recourse debt is loans raised against a collateral.
The company said it would refinance the remaining $100 million bridge loan later.
Barclays Capital, ICICI Bank, State Bank of India, Bank of India and Sumitomo Mitsui were the lead managers for the loan facility.