Debt Syndication

Tangsibji Hydro Energy Limited

Debt Syndication


Details of the Transaction (Including unique traits, if any)

The transaction involved arrangement of co-financing for debt (for the company’s 118 MW run of the river Hydro Power Project in Bhutan) on project finance basis, bringing together commercial and concessional lenders on a common platform.
The security structure was unique where Asian Development Bank (ADB- concessional financer) had recourse to Bhutan’s sovereign guarantee. Indian lenders had recourse only to project assets.



Appraised the project and syndicated  the required rupee debt of Rs. 353 Cr – collectively from State Bank of India (Rs. 250 Cr) and Export Import Bank of India (Rs. 103 Cr)  [Total project cost: Rs. 1189 Cr, total debt: Rs. 773 Cr].


Key Learnings

  1. First hydro power project in Bhutan being funded by Indian banks on a project finance basis at commercial terms in collaboration with ADB (public sector) at concessional terms.
  2. Unique structure enabled many learnings such as co-financing structure was evolved between Indian Commercial Banks and ADB, development of an alternative hedging mechanism, co-trusteeship with Bhutan security trustee, etc. Also, the structure served as a yardstick for upcoming projects to access finance on commercial terms and provide a boost to the hydropower sector in Bhutan.

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