Construction and energy conglomerate -- Lanco Infratech -- plans to borrow about $5.6 billion to expand its power generation by almost fourfold in four years as the company which also has a construction business, plans to increase total power generation capacity to more than 15,000 megawatts by 2015.
The company for this aims to raise as much as $2.2 billion of debt overseas and will borrow the remaining portion of funds from local banks in the next 15 months, while the company will spend $1.4 billion of its own cash as it builds plants to generate an additional 6,000 megawatts by March 2015. Further, the company which currently produces 3,300 megawatts is building plants to reach 9,300 megawatts by December 2013.
Recently, the company inked an agreement for raising debt of Rs 5,500 crore from a consortium of financiers led by state-run Power Finance Corporation to finance its upcoming 1,320 megawatts (MW) power generation unit in Chhattisgarh. It has raised the debt at an average rate of around 12-12.5%. The company has signed the loan document for Amarkantak unit 3 and 4, both the expansion units are scheduled to be commissioned in phases by 2014.