Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Essar Power Completes 11 Year Rupee Bond Offering Of About $125 Mln In India

India-focused energy firm Essar Energy Plc (ESSR.L) announced Wednesday that its subsidiary Essar Power Ltd has completed an 11 year Rupee bond offering of about US$125 million or Rs.7.5 billion in India.

This was the second of a number of Rupee bonds to be offered by Essar Power, which when completed will total about US$850 million or Rs.50 billion, the company said.

The company noted that the proceeds will be used to make repayments on existing loan facilities within the power business, particularly relating to its new coal fired power projects.

Essar Power was assigned a credit rating of A+ by ratings agency Credit Analysis and Research Ltd or CARE, of Mumbai, in October 2012 in respect of the proposed Rs.50 billion bond issue.

According to the company, the new bonds issued will be listed on the Bombay Stock Exchange and will be repaid from 2022 to 2024. However, it is currently intended that this bond issue will be refinanced with about.US$500 million or Rs.30.0 billion credit enhanced Rupee bond issue in due course.

Deepak Maheshwari, Essar Energy chief financial officer, said, "This bond issue will allow our power business to benefit from longer debt maturity timeframes and lower interest rates compared to our existing debt facilities. Essar Energy is well positioned to capitalise on the growing demand for power in India."

Register
To receive FREE breaking news email alerts for Essar Energy PLC and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Stocks moved notably higher over the course of the trading day on Friday after initially showing a lack of direction. The gains on the day extended the recent upward trend by the markets, with the tech-heavy Nasdaq reaching its best closing level in almost a month. Looking to capitalize on news of an Ebola diagnosis in New York City, Republican Senate candidate Scott Brown issued a statement Friday criticizing his Democratic opponent Sen. Jeanne Shaheen, D-N.H., for "waffling" on a travel ban. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.