GMR Energy to raise Rs 8,800 cr in debt
GMR Energy, a subsidiary of Bangalore-based GMR Infrastructure, was in the process of raising Rs 8,800 crore of debt, said sources. This would help the company achieve financial closure of two of its projects, a gas-based power project in Rajahmundry and a coal-based one in Chhattisgarh.
“We are in discussions with bankers for the Rajahmundry power project and are looking to achieve financial closure in the next couple of weeks,” said a top company official. The company is planning to raise Rs 2,600 crore debt for this project, to come up at Vemagiri and having capacity of 786 Mw. It is scheduled to be commissioned in 2012. The company is already operating a 388-Mw gas-based project in the area. This project receives natural gas from the Krishna-Godavari basin.
GMR Energy is also looking to achieve financial closure of its 1,200-Mw, coal-based Chhatisgarh power project by June. The company is raising Rs 6,000-crore of debt for the project. Land acquisition is close to completion and it already has a coal linkage for this project, from the state government of Chhattisgarh. This project is scheduled to be commissioned in 2012. Both these will be financed in a 70:30 debt equity ratio. A GMR spokesperson refused to comment.
GMR Energy is also developing a 1,050-Mw, coal-based power project at Kamlanga in Orissa and a 600-Mw coal-based power project acquired from Emco Energy. The company had achieved financial closure for both. It is also developing a 180-Mw hydro power project in Himachal Pradesh, and two power projects in Nepal of 250 Mw and 300 Mw capacity each.
GMR’s currently installed generation capacity is 808 Mw. It aims to increase this capacity to more than 6,500 Mw within the next four years. To facilitate these huge capital investments, the company signed an agreement to raise $200 million from Temasek, a Singapore-based Asian investment company. The investment will be through a structured paper compulsorily convertible into equity.
In addition, the company has said it plans to raise yet another $100 million through private equity.