Sterlite Power, a power transmission player, is refinancing the loan for Gurgaon Palwal Transmission Limited (GPTL) project, within three months of the project becoming fully operational in April 2020. The refinance is to prepay the existing project loan of Rs 800 crore which has been arranged by HDFC Bank.
The new facility has been availed at significantly favourable terms demonstrating the considerably improved risk profile of the project post achievement of CoD (Date of Commercial Operation).
With this transaction, Sterlite Power has achieved a reduction of almost 300 basis points in the interest cost to be incurred by the project on a per annum basis.
The refinancing of this critical ISTS project also highlights the keen interest of financial institutions in funding power transmission projects with stable long-term cash flows.
Pratik Agarwal, Managing Director, Sterlite Power, said, "We are pleased to conclude refinancing of our GPTL project loan by India’s leading financial institution, HDFC Bank. It is a testimony of the continued trust reposed on us by the banking and investor community for our ability to deliver challenging projects on time, with the highest standards of quality and safety, while delivering strong returns.”
The GPTL project connects ~2,000 MW additional power to Gurugram and Palwal areas in the state of Haryana in India. Apart from making Gurugram DG-set free, this project will enable access to reliable power for more than three million households in the state.
