SJVN secures Rs 10,000 cr construction finance facility from banks

State-owned SJVN Ltd has secured Rs 10,000 crore construction finance facility to fund its upcoming renewable energy projects from a group of leading domestic and international lenders.

The construction finance facility is a unique and first-of-its-kind transaction undertaken by a PSU entity and Public Sector Banks, a company statement said on Friday.

According to the statement, SJVN has secured Rs 10,000 crore ($1.2 billion) construction finance facility to fund its upcoming renewable power projects from a group of leading domestic and international lenders.

SJVN Green Energy Limited (SGEL), a wholly-owned subsidiary of SJVN Ltd, undertook this initiative in association with SBI Capital Markets Ltd (SBI CAPS).

SBI CAPS acted as the sole advisor and arranger for the transaction on behalf of SGEL. Construction finance attracted a tremendous response from lenders and was over-subscribed.

After detailed discussions and deliberations, proposals from five banks -- Deutsche Bank, State Bank of India, Punjab National Bank, Bank of India and MUFG Bank -- were accepted.

This credit facility is of a revolving nature that allows SJVN to draw down funds on an ongoing basis as per the construction requirements of its projects.

This facility will help SJVN to fast-track the development of its under-construction RE projects.

The facility will enable SJVN to contribute towards the government's target of achieving 500 GW of renewable energy by 2030.

The construction financing facility will be deployed strategically to develop state-of-the-art solar and wind energy projects across India, the statement said.

The details of this first-of-its-kind transaction undertaken by a PSU entity and public sector banks have been declared in an event organised by SBICAPS.

Currently, SJVN's renewable energy portfolio stands at 5,090.5 MW, out of which 179.5 MW is under operation, 1,860 MW is under construction, and 3,051 MW is under various stages of implementation.

The company is marching forward with vigour to achieve its mission of 12,000 MW by 2026 and shared vision of 25,000 MW by 2030 and 50,000 MW installed capacity by 2040.