SJVN Thermal Private Limited
Debt syndication for part financing of project cost of INR 84,484 million
- SJVN Limited (Promoter), through its Wholly Owned Subsidiary, has forayed into Thermal Power generation, for the first time, by setting up 1,320 MW Thermal Power Project
- Limited participation was seen from lenders owing to existing stress in thermal sector/ rising interest in renewable sources of energy
- Major risks perceived by lenders included, inter-alia, power demand, future of thermal sector, security enforcement, fuel supply issues etc.
- SBICAP appointed as Debt Arranger for entire project debt
- First greenfield thermal power project sanctioned by commercial banks/FIs in past 7 years
- First domestic project where commercial banks have sanctioned a Standby Facility for financing cost-overrun
- Consortium of only 3 Banks/ FIs under single Financing Documents
- ROI linked to SPV’s External Credit Rating leading to automatic reduction in pricing on improvement.
- 18-year door to door tenor for term loan in Thermal sector is unique in Indian Banking System.
SBICAP Value Add
- Keeping in view the challenges faced by Power/ Thermal sector, SBICAP was able to secure entire debt funding for the Project wherein lenders’ risk were suitably addressed and mitigated in financing terms.
- In line with RBI guidelines, SBICAP arranged upfront sanction of ‘standby credit facility’ for potential cost overrun.
|Size||INR 84,484 Million|
|Interest Rate||SBI 6 Month MCLR + Spread (Spread linked with ECR)|
|Door to Door Tenor||18.25 years (including 1 year of moratorium and 14 years of repayment)|
|Security||Loan secured by all Project assets|