PE Fund Investments
Kotak funds invest Rs.732-Cr in RattanIndia Power; Goldman & Varde Partners exit
Business Standard BSE Announcement
Kotak Investment Advisors - via two of its funds - has invested INR 732 crore in the non-convertible debentures (NCDs) of publicly listed, New Delhi-headquartered RattanIndia Power Ltd (RIPL). While Kotak Strategic Situations India Fund II has invested INR 582 crore, Kotak Private Credit Fund (KPCF), INR 150 crore. The funding is part of a larger investment by a consortium of lenders, led by Kotak Mahindra Bank that the power company will use to refinance its existing debt. In December 2019, RIPL had concluded a resolution with the erstwhile lenders for 1,350 MW Amravati Thermal Power Plant, whereby the loans from Indian banks and financial institutions were taken over by Goldman Sachs and Varde Partners (through Aditya Birla ARC) along with 15% equity stake each to both sets of lenders (outgoing and incoming). RIPL has repaid INR 3,371 crore over last three and a half years to these international financial institutions, out of which INR 988 crore was prepayment. Via the latest borrowing from the Kotak led group, RIPL has now fully repaid the balance senior debt to these foreign financial institutions.
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