Debt

Debt financing

JSW group's renewable energy unit to raise Rs.3,900-Cr term loan

Business Standard  

JSW Renewable Energy Ltd (JREVL) is raising a term loan of INR 3,900 crore to fund its power business unit, which will also use the money to repay Letter of credit (LC) facilities at maturity. JREVL is developing an 825 Mw hybrid plant (225 Mw solar, 600 Mw wind) at a cost of INR 5,255 crore, which is being funded in a debt-equity ratio of 75:25. India Rating has assigned an “A+” to the term loan. Equity worth INR 542 crore has been infused in the project by the parent and sponsor JSW Energy Ltd (JEL). The firm has a 25-year PPA with JSW Steel for the entire project capacity of 825 Mw, at a fixed tariff. For the wind power plant, the company requires 223 land parcels spread across several villages. Of these 151 land parcels have been acquired.