Mumbai, February 14th, 2024: Sterlite Power, a leading power transmission developer, and global products and services provider, announced the successful refinancing of the Lakadia-Vadodara Transmission project loan within 12 months of the project becoming fully operational in January 2023. The new financing from HDFC Bank, IIFCL and Bank of Baroda will enable prepayment of the existing project loan of approximately INR 1840 crores.
The new refinancing secures a reduced interest rate of ~8.25% p.a.p.m, a significant improvement over the previous terms. The overall tenure of the facility is ~18 years. As the first private sector inter-state power transmission asset to secure such favourable refinancing terms, this accomplishment reflects the keen interest of financial institutions in supporting power transmission projects that offer stable, long-term cash flows.
Commenting on the significant milestone, Pratik Agarwal, Managing Director, Sterlite Power said, “Refinancing our commissioned projects are in line with our efforts toward strategic reallocation of resources. Securing a better interest rate for the commissioned project further adds to our bottom line while delivering value to all stakeholders.”
The LVTPL project connects the 765/400 kV substation at Lakadia to Vadodara through a 335 km long, 765 kV double-circuit transmission line. With 812 towers spanning seven districts in Gujarat, this power transmission corridor is also one of the largest transmission assets built in India to date.
