Debt

Debt financing

Adani Energy's transmission project attracts Rs.632-Cr

Economic Times  

HDFC Bank is making an INR 159.6 crore anchor investment in the INR 532 crore unsecured non-convertible debenture (NCDs) issue of Adani Energy Solutions’ transmission SPV, WRSS XXI (A) Transco. The debt, rated AAA by Crisil and ICRA, will carry a fixed coupon of 7.70% and mature on March 31, 2043.WRSS XXI, or the Western Region Strengthening Scheme XXI, was set up to strengthen the transmission system for relieving over-loadings observed on the Gujarat intrastate system due to renewable energy injections in Bhuj. It establishes a transmission system for renewable energy generation at Bhuj-II, Dwarka and Lakadia in Gujarat. WRSS XXI will use the new funds to refinance costlier external commercial borrowing of INR 740.8 crore, due for repayment in October 2025. The proposed NCDs include a put option at the end of the fifth year and annually thereafter. Lenders also have the right to demand early repayment if the company's credit rating falls below A+.Apart from this HDFC Bank-arranged fundraising, WRSS XXI raised another INR 100 crore. Darashaw & Co arranged this tranche, carrying a 7.84% coupon and maturing in September 2044.