Coastal Gujarat Power Limited (CGPL) completes refinancing of ECB loans
Shalini | Myequity news | Date : 28-09-2018 15:55:00 IST
Coastal Gujarat Power Limited, a wholly owned subsidiary of Tata Power which implemented the 4000 MW Mundra UMPP, has completed refinancing of the outstanding ECB loans amounting to approx. Rs. 5,500 cr through a mix of INR-denominated debt instruments and equity fundingfrom the proceeds of divestment of non-core assets of the Company. The refinancing of USD loans of CGPL will help in rescheduling the cash requirements as well reducing the effective interest cost apart from reducing foreign exchange related volatility for CGPL.
This is also expected to ease cash flow burden resulting from the continuing losses due to the continuing under-recoveries in the Mundra Ultra Mega Power Project.
Speaking on this initiative, Mr. Praveer Sinha, CEO & Managing Director, Tata Power, said, “ We have been looking at various options to improve viability of Mundra UMPP. This is one more step in the same direction as it reduces interest cost burden and cash flow burden on CGPL.” About Tata Power:
Tata Power is India’s largest integrated power company and, together with its subsidiaries & jointly controlled entities, has an installed capacity of 10857 MW. A pioneer in the field, it has a presence across the entire power value chain: Generation of renewable as well as conventional power including hydro and thermal energy; transmission & distribution, trading and coal & freight logistics. With renewable energy assets in solar and wind accounting for 22% of the company's portfolio, Tata Power is a leader in clean energy generation. In line with the company's view on sustainable and clean energy development, Tata Power is steering the transformation of utilities to integrated solutions by looking at new business growth in EV charging & storage, distributed generation & rooftops, microgrids and home automation & smart meters.