Lanco Infra to get $2-bn loans from Chinese banks

Written by fe Bureau | New Delhi | Updated: Nov 27 2012, 09:12am hrs
Integrated infrastructure conglomerate Lanco Infratech on Monday said that the China Development Bank will arrange loans worth $2 billion (over R11,000 crore) for its two 1,320-MW power projects Anpara Phase II and Himawat substantially easing liquidity pressure on the company over delays in getting loan aprovals from domestic banks and institutions.

The China Development Bank (CDB), owned by the Chinese government, would arrange the loan amount through its own sources and other Chinese banks. "Out of the total amount of $ 2 billion required to be raised, $600 million will be contributed by CDB while it will syndicate the balance from Chinese banks and financial institutions," Lanco said in a statement.Lanco and CDB have entered into a Memorandum of Understanding (MoU) for the loan facilities.

"This is going to help us in improving the economies of the project and shall help us in completing the power projects within the stipulated time," Lanco Infratech Chairman L Madhusudhan Rao said. Lanco is also in the process of addressing the debt equity ratio at the same time, he added. Lanco's debt burden stood at nearly R32,000 crore at end of 2012 June quarter.According to the company, CDB has already sanctioned $200 million buyers credit for Amarkantak 3 and 4, Babandh and Vidarbha power projects of the company.