Anil Ambani group's Reliance Power has identified HSBC, Standard Chartered and ABN Amro among other foreign banks for raising $2 billion of debt to help fund its ultra mega power project in Sasan. The company has received the Reserve Bank of India (RBI) approval for this external commercial borrowing (ECB) proposal to finance the foreign exchange portion of debt for Sasan and is looking to complete the process next month, sources close to the development said. Besides, the company is also in the process of finalising the names of local financial institutions for a domestic debt of about Rs 6,600 crore in the next few months, they added. When asked about the financing plan to raise Rs 14,600 crore of debt, a company spokesperson said that "the process is on", but declined to give further details.However, the sources said that the one-time approval from RBI would enable the company to raise low-cost funds for the project and would also facilitate a timely financial closure.Sources said that talks are on with leading foreign banks and the company has also appointed SBI Caps as arranger for the domestic debt. The due-diligence and appraisal process commenced last month and is expected to be completed by the next month.Out of the total capital outlay of about Rs 18,000 crore, the company is looking to raise Rs 14,600 crore through debt. Sasan is the country's largest domestic coal based power project at a single location in Madhya Pradesh.Shares of Reliance Power today surged 6.4 per cent at the BSE to close at Rs 384.35 in a firm market. The stock had plummeted to an all-time low of Rs 303.45 on March 24, marking a plunge of nearly 50 per cent from its all-time high of Rs 599.90 scaled in its debut trading session on February 11.Reliance Power had raised close to three billion dollar in an initial public offer earlier this year after selling shares at a price of Rs 450 a piece and at Rs 430 to retail shareholders.Despite an impressive response to the IPO, the shares had made a disastrous debut on the bourses and the stock closed below the issue price on the first day itself. In its bid to safeguard investors' interests, at a meeting on February 24, the company's board had approved a bonus issue of three shares for every five held by its non-promoter shareholders. Later in March, the company said it would seek shareholders' approval for the bonus issue worth about Rs 136.80 crore through postal ballot.
