Shimla: Nand Lal Sharma Chairman & Managing Director, SJVN informed that SJVN has secured Rs 10,000 Crores (US $ 1.2 Billion) Construction Finance Facility to fund its upcoming renewable power projects from a group of leading domestic & international lenders. The Construction Finance Facility is a unique and first of its kind transaction undertaken by a PSU entity and Public Sector Banks.
Sharma further apprised that SJVN Green Energy Limited (SGEL), a wholly owned subsidiary of SJVN Limited 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 tremendous response from lenders and was over-subscribed.
After detailed discussions & deliberations proposals from five banks namely Deutsche Bank, State Bank of India, Punjab National Bank, Bank of India and MUFG Bank were accepted. This credit facility is of revolving nature that allows SJVN to draw down funds on an ongoing basis as per the construction requirements of its projects. This facility will enable SJVN in fast-tracking the development of its under-construction RE projects. The facility will enable SJVN in contributing its bit towards Government of India’s target of achieving 500 GW Renewable Energy by 2030.
Nand Lal Sharma applauded the efforts of SBI CAPS and Team SJVN in achieving this feat of making finance readily available for all the upcoming RE projects of SJVN. He further elaborated that the construction financing facility shall be deployed strategically to develop state-of-the-art solar and wind energy projects across India. These projects are expected to create employment opportunities, boost the local economies and contribute significantly in harnessing renewable energy.
“We are exhilarated to have secured this facility from five leading banks, which underscores the financial community’s recognition of our commitment to a greener and more sustainable future” said Sharma.
The details of this first of its kind transaction undertaken by a PSU entity and Public Sector Banks has been declared in an event organized by SBICAPS. The event was also graced by Smt. Geeta Kapur, Director (Personnel), SJVN Shri Akhileshwar Singh, Director (Finance), SJVN and Shri Mukul Modi, Executive Vice President, SBI CAPS. The event was also attended by Senior officials from SJVN, SGEL, SBICAPS and the Syndicating Banks.
Currently SJVN’s RE portfolio stands at 5090.5 MW out of which 179.5 MW is under operation, 1860 MW is under construction and 3051 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 & 50,000 MW installed capacity by 2040.