Reliance Power has outlined huge capex plans to fund its Sasan and Krishnapatnam UMPPs.
The company has mandated SBI to raise Rs. 10,000 crore rupee debt for Sasan, while for Krishnapatnam, it will raise Rs. 26,000 crore through rupee debt (Rs. 10,000 crore) and ECBs (Rs. 16,000 crore). The IPO proceeds (Rs. 11,700 crore) will contribute to the equity portion of the projects.
The company is targeting a generation capacity of over 28,000 MW over the next few years, and this would need investments of up to Rs. 1,00,000 crore (@ Rs. 4 crore per MW of thermal capacity).
According to analysts, power generation companies with high leverage are likely to be adversely affected during an increased interest rate scenario. The company is moving ahead with its fund-raising plans at a time when interest rates have peaked.
No comments:
Post a Comment