Essar Power said it has raised Rs 750 crore in debt through rupee-denominated bond offering.
Essar Power is a subsidiary of London-listed Essar Energy. The proceeds will be used to repay existing loans in the power business, particularly relating to new coal-fired projects.
The new bonds issue will be listed on the Bombay Stock Exchange and will be repaid from 2022 to 2024.
Deepak Maheshwari, Chief Financial Officer, Essar Energy, said: “This bond issue will allow our power business to benefit from longer debt maturity timeframes and lower interest rates compared to our existing debt facilities.”
Essar Power has seven power plants in India and one in Algoma, Canada.