Sterlite Power, on Monday, said it has successfully refinanced project loan for the recently-commissioned Khargone transmission project. The new financing from Aseem Infrastructure Finance - ₹525 crore, NIIF Infrastructure Finance - ₹450 crore and Aditya Birla Finance - ₹225 crore will enable prepayment of the existing project loan of around ₹1,100 crore.
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 an annual basis, demonstrating the considerably-improved risk profile of the project post achievement of CoD (Date of Commercial Operation), the company said in a statement.
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, it added.
The Khargone transmission project achieved successful commissioning in December 2021. It transmits 1,320 megawatts (MW) of power generated by the Khargone power plant to 765-kV Khandwa substation to further distribute it across the western and central regions.
“This transaction will provide greater financial headroom to the business in the coming years,” said Pratik Agarwal, Managing Director, Sterlite Power.
The company is a power transmission infrastructure developer and solutions provider with projects covering around 13,700 circuit km of transmission lines across India and Brazil.