RPower-JERA JV achieves financial closure for Bangladesh project

By: |
March 5, 2021 3:15 AM

“All requisite conditiins for availing the drawdown under the loan agreements have been satisfied,” RPower said in a statement.

RPower had earlier synchronised two units of the Rs 10,000 crore or 2400 MW project in Samalkot . RPower had earlier synchronised two units of the Rs 10,000 crore or 2400 MW project in Samalkot .

Reliance Power (RPower) and JERA joint venture project company said on Thursday it has achieved the financial closure for phase-1 of 745 MW gas based combined cycle power project in Meghnaghat, Bangladesh with group of lenders —Japan Bank of International Cooperation (JBIC), and Asian Development Bank (ADB).

“All requisite conditiins for availing the drawdown under the loan agreements have been satisfied,” RPower said in a statement.

Subsequently, RPower’s wholly owned subsidiary Samalkot Power has received the approval from the US Export Import Bank to sell one module of equipment (Module 1) to Samsung C&T Corporation of South Korea, who is the EPC contractor for the project, for around Rs 1,540 crore.

“Notice to proceed has been issued by the project company to Samsung C&T, who in turn has issued the notice to proceed to Samalkot Power for supply of equipment,” RPower said.

RPower decided to relocate the equipment from Samalkot to Bangladesh owing to non availability of natural gas for the project. The equipment was procured from internationally reputed OEMs. RPower had earlier synchronised two units of the Rs 10,000 crore or 2400 MW project in Samalkot .

RPower had in July 2019 restructured the Rs 2,430 crore Samalkot loan from US Exim Bank by amortising repayment schedule into bullet repayments and extended the final loan maturity to June 2022 at an ultra-low interest rate of only 2.65% per annum.

Reliance Power has a networth of Rs 12,063 crore and debt to equity of 2.24 times as of December 31, 2020. The company expects to reduce the total debt of over Rs 20,000 crore by upto Rs 3,000 crore by March 2021.

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