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SJVN Thermal Private Limited

Debt syndication for part financing of project cost of INR 84,484 million

2021

Overview

  • 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

 

Deal Highlights

  • 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.

Deal Summary

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

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