New Delhi: SJVN Limited on Thursday said that it has secured Rs 10,000 crore construction finance facility to fund its upcoming renewable power projects from a group of leading domestic and international lenders. 'The construction finance facility is a unique and first of its kind transaction undertaken by a PSU entity and Public Sector Banks,' the clean energy PSU said.
According to the company, SJVN Green Energy Limited (SGEL), a wholly owned subsidiary of SJVN Limited undertook this initiative in association with SBI Capital Markets Ltd (SBI CAPS). SBI CAPS acted as the sole advisor and arranger for the transaction on behalf of SGEL. Construction Finance attracted tremendous response from lenders and was over-subscribed.
After detailed discussions & deliberations proposals from five banks namely Deutsche Bank, State Bank of India, Punjab National Bank, Bank of India and MUFG Bank were accepted. This credit facility is of revolving nature that allows SJVN to draw down funds on an ongoing basis as per the construction requirements of its projects. This facility will enable SJVN in fast-tracking the development of its under-construction RE projects. The facility will enable SJVN to contribute its bit towards Government of India’s target of achieving 500 GW of Renewable Energy by 2030.
SJVN CMD NL Sharma applauded the efforts of SBI CAPS and team SJVN in achieving this feat of making finance readily available for all the upcoming RE projects of SJVN. He further elaborated that the construction financing facility shall be deployed strategically to develop state-of-the-art solar and wind energy projects across India. These projects are expected to create employment opportunities, boost the local economies and contribute significantly in harnessing renewable energy.
The details of this first of its kind transaction undertaken by a PSU entity and public sector banks has been declared in an event organised by SBI CAPS. The event was also graced by Geeta Kapur, Director of (Personnel) of SJVN, Akhileshwar Singh, Director (Finance) of SJVN and Mukul Modi, Executive Vice President of SBI CAPS. The event was also attended by senior officials from SJVN, SGEL, SBI CAPS and the syndicating banks.