Construction finance facility of Rs 10,000 cr is secured by SJVN from banks

A consortium of top domestic and international lenders has reportedly agreed to provide SJVN with a construction finance facility worth Rs 10,000 crore (USD 1.2 billion) to finance its planned renewable power projects.

PTI

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To finance its upcoming renewable energy projects, state-owned SJVN Ltd has obtained a construction finance facility worth Rs 10,000 crore from a consortium of top domestic and international lenders. An official statement from the firm on Friday stated that the construction finance facility is a special and unprecedented transaction that Public Sector Banks and a PSU enterprise have started.

In collaboration with SBI Capital Markets Ltd (SBI CAPS), SJVN Green Energy Limited (SGEL), a fully-owned subsidiary of SJVN Ltd, launched this project.The statement states that a consortium of top domestic and international lenders has provided SJVN with a construction finance facility worth Rs 10,000 crore (USD 1.2 billion) to finance its planned renewable power projects.

The only advisor and transaction arranger working on behalf of SGEL was SBI CAPS. Lenders showed enormous interest in construction finance, which resulted in oversubscription.

Five banks' proposals—Deutsche Bank, State Bank of India, Punjab National Bank, Bank of India, and MUFG Bank—were approved following thorough discussions and deliberations.

Due to the revolving nature of this credit arrangement, SBICAPS can continuously withdraw money as needed to complete its projects' construction.

With the aid of this facility, SJVN will be able to expedite the development of its ongoing RE initiatives.

The establishment of the facility will allow SBICAPS to fulfill its share of the government's 2030 target of 500 GW of renewable energy.

According to the statement, modern solar and wind energy projects will be developed throughout India with the strategic deployment of the construction finance facility.

In an event hosted by SBICAPS, the specifics of this unprecedented transaction involving public sector banks and PSU entities were disclosed.

With 1,860 MW under construction, 3,051 MW in various phases of implementation, and 179.5 MW now in operation, SJVN has a portfolio of 5,090.5 MW of renewable energy.