In a first, Singapore based Agritrade Resources has acquired SKS Power Generation (Chattisgarh) in a one-time settlement of Rs 21.70 billion with its lenders. This would be the first one-time settlement resolution of a power asset post-Reserve Bank of India's February circular this year.
Agritrade Resources said in a statement to the Hong Kong exchanges on Monday said it has entered into an assignment agreement, pursuant to which the company has agreed to pay to the lenders the assignment amount as the consideration for the assignment and transfer of the existing fund based debt of SKS Power Generation. “The total amount payable is estimated at Rs 21.70 billion,” Agritrade said in its statement.
The settlement is for all the outstanding debt to State Bank of India, L&T Infrastructure Finance Company Limited and PTC (India) Financial Services.
Agritrade intends to satisfy the amount partly by the internal resources of the Group and partly by loan borrowing from an independent third party as project financing, the company said in its statement.
V-Magnum Opus Strategic Solutions was the transaction advisor to Agritrade for this acquisition. Agritrade is a diversified energy provider with strong expertise in coal and renewable energy, headquartered in Singapore. Agritrade provides solutions for sustainable mining, cleaner coal and affordable energy access.
In its statement, Agritrade said SKS Generation has 300 Megawatt of the planned coal-fired 600 megawatts operational in Chattisgarh.