Overview

• SJVN Limited (Promoter), through its Wholly Owned Subsidiary, has forayed into Thermal Power generation, for the first time, by setting up 1,320 MW Thermal Power Project
• Limited participation was seen from lenders owing to existing stress in thermal sector/ rising interest in renewable sources of energy 
• Major risks perceived by lenders included, inter-alia, power demand, future of thermal sector, security enforcement, fuel supply issues etc.
• SBICAPS appointed as Debt Arranger for entire project debt

Deal Highlights

• First greenfield thermal power project sanctioned by commercial banks/FIs in past 7 years
• First domestic project where commercial banks have sanctioned a Standby Facility for financing cost-overrun
• Consortium of only 3 Banks/ FIs under single Financing Documents
• ROI linked to SPV’s External Credit Rating leading to automatic reduction in pricing on improvement.
• 18-year door to door tenor for term loan in Thermal sector is unique in Indian Banking System.

SBICAPS Value Add

• Keeping in view the challenges faced by Power/ Thermal sector, SBICAPS was able to secure entire debt funding for the Project wherein lenders’ risk were suitably addressed and mitigated in financing terms.
• In line with RBI guidelines, SBICAPS arranged upfront sanction of ‘standby credit facility’ for potential cost overrun.