OPG Power Ventures plc Financial Closure for 80MW Chennai IV (0490K)
August 15 2012 - 2:00AM
UK Regulatory
TIDMOPG
RNS Number : 0490K
OPG Power Ventures plc
15 August 2012
15 August 2012
OPG Power Ventures plc
("OPG" or the "Company")
Financial closure for 80MW Chennai IV achieved
OPG Power Ventures announces the financial closure of its 80 MW
Chennai IV power project. As announced on 19 July 2011, the equity
component of the funding for this project is from internal cash
generation. The newly arranged debt of InRs322 Crores
(approximately (GBP)37 million) is denominated in local currency
and is to be provided by a syndicate of Indian lending banks, many
of which are amongst the Group's existing lenders. The project is
funded in a 3:1 debt to equity ratio. As is normal under the
arrangement, interest is payable at a variable rate and the debt is
repayable over a total period of 12 years including the initial
construction and moratorium period. The debt is backed by a
personal guarantee from Mr Arvind Gupta, Managing Director.
The 80 MW Chennai IV is a replica of Chennai I and II, and
shares the same site and certain infrastructure with those units.
The project has all the necessary approvals, Indian coal linkages,
land, financing and, being already under construction, is estimated
to be approximately 65% complete based on the Company's internal
measurement basis and project milestones. The project is currently
ahead of schedule and expected to commission by June 2013, taking
operating capacity to 270 MW across five operating units. Current
aggregate operating capacity is 113 MW with a further 77 MW
(Chennai II) expected to be commissioned shortly.
As Chennai IV is to be commissioned ahead of the larger 160 MW
project at the same site and currently under development, the 80 MW
project is now to be renamed Chennai III with the larger project
henceforth referred to as Chennai IV.
Managing Director Arvind Gupta commented, "This new facility
demonstrates the merits of our model at a time when many other
projects around the country are being deferred or facing financing
difficulties. With the equity for this project being generated
internally principally by Chennai I, I expect this project to
enhance returns to our investors. The Group now has all its
required debt and equity for the 730 MW of assets we're currently
building to service the needs of our customers and create value for
our shareholders."
For further information, please visit www.opgpower.com or
contact:
+91 (0) 44 429
OPG Power Ventures plc 11 222
Arvind Gupta (Managing Director)
V. Narayan Swami (Finance Director)
Cenkos Securities (Nominated Adviser +44 (0) 20 7397
& Broker) 8900
Stephen Keys/ Camilla Hume
+44 (0) 20 7920
Tavistock Communications 3150
Simon Hudson
Kelsey Traynor
About OPG
OPG is operating and developing power projects in India under
the group captive model with 113 MW in operations and a further 629
MW under development. In the year to 31 March 2012, the Group's
revenues were (GBP)45.25m and profit before tax was (GBP)2.26m.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
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