Tata Power's Mundra UMPP completes refinancing of Rs 5,500 cr ECB loans

Tata Power said Friday said that its arm Coastal Gujarat Power has completed refinancing of ECB (external commercial borrowing) loans of around Rs 5,500 crore from divestment of non-core assets.

"Coastal Gujarat Power Limited, a wholly owned subsidiary of Tata Power which implemented the 4,000 MW Mundra UMPP, has completed refinancing of the outstanding ECB loans amounting to USD 770 million (appx Rs 5,500 crore) through a mix of rupee denominated debt instruments and equity funding from the proceeds of divestment of non-core assets of the company," the firm said in a statement.

According to the statement, the refinancing of USD loans of the CGPL will help in rescheduling the cash requirements as well reducing the effective interest cost, apart from reducing foreign exchange related volatility for the CGPL.

The company said this is also expected to ease cash flow burden, resulting from the losses due to the continuing under-recoveries in the Mundra Ultra Mega Power Project.

"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 the CGPL," Praveer Sinha, CEO & Managing Director, Tata Power, said in the statement.