RattanIndia Power secures refinancing of senior debt with Rs 1,114 crore transaction led by Kotak Mahindra Bank

RattanIndia. Representative Image

RattanIndia Power Ltd, a leading power company, on June 25 announced that it has successfully refinanced its senior debt in a transaction worth Rs 1,114 crore. The refinancing was led by Kotak Mahindra Bank.

In December 2019, RattanIndia Power Ltd reached a resolution with its previous lenders regarding the 1,350 MW Amravati Thermal Power Plant. The loans from Indian banks and financial institutions were taken over by international financial institutions, including Goldman Sachs and Varde Partners, through Aditya Birla ARC. As part of the resolution, both sets of lenders, outgoing and incoming, received a 15% equity stake each.

Since the resolution in December 2019, RattanIndia Power Ltd. has repaid a total amount of Rs. 3,371 crore to these international financial institutions.  Out of this, Rs. 988 crores was prepayment.

"With the successful refinancing, RattanIndia Power Ltd. has fully repaid the remaining senior debt owed to these foreign financial institutions," the company said in a regulatory filing on late June 24.

The company's operational performance has remained robust, with an average annual EBITDA exceeding Rs. 1,000 crores since the commissioning of the plants over the last 8 years.

The 1,350 MW Amravati Power Plant has a full Power Purchase Agreement (PPA) with Maharashtra discom MSEDCL and enjoys a full coal linkage with Coal India subsidiary, South Eastern Coalfields Limited.

Commenting on the refinancing, Rajiv Rattan, Chairman of RattanIndia Power, emphasised the significance of electricity for India's economic growth. He highlighted the company's commitment to building world-class plants in Maharashtra and the exceptional operational performance of the Amravati Power Plant over the past 8 years, which has generated robust cash flows.