BL reported that JSW Energy Ltd is looking to pre pay corporate debt worth INR 475 core to cut down funding costs for power projects under implementation.
Mr SS Rao CEO and joint MD of JSWEL said that "We need to cut costs since some of the supply agreements are based on tariff bids for long periods. Almost all of JSWEL's projects, under implementation, have tied up their forward linkages with bulk buyers.”
Mr Rao said that JSWEL's investment in the power plants is estimated at INR 15,900 crore. He said “Almost all the projects were funded through a 75:25 debt equity ratio. However it has reserved some capacities for merchant sales. This included generation from the 1,200 MW project in Ratnagiri that is expected to start generation by 2011.”
JSW Energy to hit capital market in third week of October. The company is implementing projects in Maharashtra, Rajasthan, Chhattisgarh, Himachal Pradesh and Karnataka for 3,065 MW. The company has achieved financial closure for a majority of the projects with the exception being the Chhattisgarh project.
(Sourced from http://www.steelguru.com/news/index/2009/09/12/MTExMzU4/JSW_Energy_plans_to_pre_pay_INR_475_crore_debt.html)
Friday, September 11, 2009
JSW Energy plans to pre pay INR 475 crore debt
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