GVK Power, a unit of infrastructure major GVK Group, is raising $1.2 billion as debt to part fund its acquisition of Hancock mines in Australia. The firm has roped in ICICI Bank for syndicating the $1.2 -billion loan and is likely to close the final transaction, estimated to cost about $3.4 billion, in a couple of months. The loans will carry an interest of 10% and will be completed in the next 2 weeks. The funding will be raised via a special purpose vehicle that will be registered overseas.
The Reddy family-owned GVK Power has been in talks with financial investors such as Standard Chartered and ICICI Bank as well as private equity majors 3i, Actis and Macquarie to raise about $1.5 billion (about Rs 6,800 crore) for acquiring Australia's Hancock Coal.
The two Hancock assets- Kevin's Corner & Alpha Coal - lie in the much sought after Galilee basin where companies like Adani and Lanco recently acquired assets. The deal would see GVK acquiring 100% stake in Kevin's Corner and Alpha Coal Project assets. Hancock Coal had put the two thermal coal mines on the block. The mines have proven reserves of about 2 billion tonnes.
The group currently has power projects worth Rs 4,500 crore under development and construction stage. GVK Energy, the power subsidiary, has only a single coal-based power project in Goindwal Sahib, Punjab. The project's capacity was increased to 1,860 megawatt recently. It has three hydel power projects under development with a combined capacity of 1,390 mw. As a group, it aims to reach 10,000 mw in the next three-five years.
| Company Name | CMP |
|---|---|
| NTPC | 350.65 |
| Tata Power | 377.25 |
| Power Grid Corpn. | 288.90 |
| Adani Power | 213.95 |
| Torrent Power | 1440.40 |
| View more.. | |
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