Reliance Power clears debt of Rosa Power focusing on green energy growth

Reliance Power announced today that its subsidiary, Rosa Power Supply Company, has fully repaid its remaining debt of Rs 485 crore to Singapore-based Varde Partners.

 

The prepayment, totalling Rs 1,318 crore, renders Rosa Power a zero-debt entity, according to a company press release. This amount includes a prepayment made to the same lender in September.

 

Rosa Power operates a 1,200 megawatt (MW) coal-based thermal plant in Uttar Pradesh and had earlier, in September, cleared Rs 833 crore of its debt.

 

The company had taken a loan of around Rs 1,000 crore from Varde Partners in 2022 as part of a refinancing arrangement aimed at reducing overall borrowing costs and managing liquidity.

 

 

With this latest prepayment, Reliance Power’s balance sheet has been bolstered by a Rs 1,525 crore equity-linked preferential issue, raising the company’s net worth from Rs 11,155 crore to over Rs 12,680 crore, the company said.

 

Wednesday’s payment marks the latest development in a series of actions positioning the energy company to intensify its push into the renewable energy sector.

 

Reliance Power stated that it aims to leverage this strengthened financial position to explore growth opportunities in clean energy, aligning with industry trends towards sustainability.

 

The listed entity now carries zero bank debt, underscoring its commitment to a robust balance sheet as it pivots towards renewable energy investments.

 

The company has a portfolio of power projects in the private sector, spanning coal, gas, hydro, and renewable energy, with a commissioned capacity of 5,300 MW.

 

The company's shares closed at Rs 43.47 per share, up 5 per cent, while the benchmark Sensex rose by 1.13 per cent to 80,378.13 points.