Lanco Infratech ties up $2 billion loans from Chinese banks

Tags: News
Infrastructure company, Lanco would raise a debt of $2 billion from the China Development Bank for two of it’s power projects — Anpara phase II and Himawat.

The company on Monday said they have signed a memorandum of Understanding with the government-backed bank. Of the total amount, the Chinese Development Bank will contribute $600 million and the bank will syndicate the rest from other Chinese banks and financial institutions.

“For the past couple of quarters, we have been working on strategies to address the liquidity concerns due to delay in receivables from utilities. The transaction comes at a time when many are saying that market conditions are quite unfavorable and sentiments are impacted. We are also working closely with utilities so that receivables can come through, which is likely in the coming days,” said L Madhusudhan Rao, chairman, Lanco Infratech, adding that the company is in the process of addressing the debt equity ratio as well.

The two power plants have a capacity of 1,320 megawatt each, with supercritical boiler technology. It is estimated that each project may have a total cost of around $1.25 billion, of which 20-30 per cent would be raised through equity.

“It will take a year’s time for the project to get on stream. We may raise the equity through internal or external sources, but this component may even go higher,” said Sharad Jhingan, chief operating officer, Lanco Infratech.

Lanco now has an operating capacity of 4740 MW and 4636 MW in different stages of execution, across coal, gas, hydro, solar and wind projects. It has also set a target of having 13,000 MW of capacity in the coming two years.

So far, CDB has sanctioned over $7 billion to Indian corporations and has an outstanding amount of over $4.3 billion. The bank is also said to have sanctioned $200 million buyer’s credit to Lanco for Amarkantak 3 & 4, Babandh and Vidarbha power projects being developed by the company. The company has an EPC order book of Rs 28,500 crore.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • State-owned banks can ride technology surge to penetrate retail segment

    For the first time in recent history, two large private sectors banks, ICICI and Axis have reduced their headcounts.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Amita Sharma

The rabbit hole of outcome budgets

Would you tell me, please, which way I ought to ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture