Sterlite Power Raises Rs 200 Crore, Focus on Greening the Grid

Sterlite Power has raised Rs 200 crore in debt financing from Allianz GI, representing the firm’s 1st infrastructure sector deal in India.

Sterlite Power, a leading global power transmission player, has announced that it has raised Rs 200 crore in debt financing from Allianz Global Investors (Allianz GI) – a leading investment managers firm with focus on sustainable investments. This transaction is one of the first infrastructure sector financing deals for Allianz GI in India. The Rs 200 crore facility from Allianz GI has been raised as a non-convertible debenture with a three-year tenure and is part of the larger refinancing exercise undertaken by Sterlite Power to reduce its holding company borrowings.

Sterlite Power is increasingly focused on integrating renewable energy (RE) to the grid. The company enjoys an impressive track record of completing projects on time with the highest standards of quality and safety.

Pratik Agarwal, Managing Director, Sterlite Power, said, “this transaction with Allianz GI is a strong validation of the continued trust reposed on us by the banking and investor community, and the rise of power transmission as an asset class with promising returns. We remain focused on our endeavour towards greening the grid by delivering some of the most challenging and impactful transmission projects in the country.”

The power transmission firm has been successful in concluding a significant number of financial deals with leading global and national investors. It has raised project finance from both private as well as public sector financial institutions like HDFC Bank, Power Finance Corporation Limited and REC Ltd., for its transmission projects that are playing a vital role in the evacuation of renewable energy. 

Recently, the company announced an equal partnership with global investment manager AMP Capital, to develop greenfield power transmission projects in India. The two firms will invest USD 150 Million each in the development of four transmission projects. The two have put in place a debt financing facility, which represents a total capital outlay of around USD 1 billion.

The 4 projects have a circuit length of nearly 1800 kilometres of transmission lines across the Western, Southern and North Eastern regions of India. They will provide the critical infrastructure required for evacuating power from multiple renewable energy generation projects and will strengthen the power delivery infrastructure in the country.