Reliance Power to raise Rs 1,200 crore in debt from Varde Partners | The Financial Express

Reliance Power to raise Rs 1,200 crore in debt from Varde Partners

RPL will raise jointly with a subsidiary, the company said in a stock exchange update.

Reliance Power to raise Rs 1,200 crore in debt from Varde Partners
If successful, this would be RPL’s second fund-raising for Reliance Group from Varde Partners.

Reliance Power (RPL) has entered into an agreement with global investment firm Varde Partners to raise up to Rs 1,200 crore in debt, which the Anil Ambani group firm will use for settling financial liabilities. Following the deal, the company’s share prices closed up 9.91% on the BSE.

The drawdown of the debt will be subject to the finalisation and execution of binding documents and all requisite approvals including regulatory approvals. RPL will raise jointly with a subsidiary, the company said in a stock exchange update.

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If successful, this would be RPL’s second fund-raising for Reliance Group from Varde Partners. Earlier Reliance Infrastructure had raised about Rs 550 crore from its promoter group companies and Varde Partners in June last year.

Earlier in June this year, Varde Partners had made a debt investment of about Rs 440 crore in real estate firm Omaxe, and before which it had invested about Rs 1,622 crore in KSK Mahanadi. The US-based investment firm is also a bidder for the two debt-ridden Srei group companies, Srei Infrastructure Finance and Srei Equipment Finance, which are undergoing a bankruptcy process.

RPL has an operating portfolio of 5,945 MW of power projects across coal, gas, hydro and renewable energy.

In a separate notice, RPL said the company has convened a board meeting on September 8 seeking approval to raise long-term resources from domestic or global markets. The firm intends to raise the funding through the issuance of equities and securities. Warrants or preferential issues among others. However, RPL did not specify the amount it intends to raise.

Earlier in March, Piramal Capital and Housing Finance (PCHFL) initiated bankruptcy proceedings against RPL and its subsidiary Reliance Natural Resources (RNRL), following a default of a Rs 526-crore loan. RNRL, which was merged with Reliance Power in 2010, had obtained a loan from Dewan Housing Finance Corporation (DHFL). The Piramal Group, controlled by billionaire Ajay Piramal, had acquired DHFL for a total consideration of Rs 34,250 crore in 2021 and then merged it with PCHFL.

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Several firms of the Anil Ambani group, including Reliance Infratel (the tower arm of Reliance Communications), Reliance Telecom, Reliance Naval and Reliance Capital are currently under insolvency processes.

On Monday, RPL’s shares closed up 9.91% at Rs 23.30 on the BSE, which ended up 0.75%.

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