OPG Power Ventures plc Issue of Debentures, Prepayment of Term Loans (9620Q)
June 24 2020 - 7:38AM
UK Regulatory
TIDMOPG
RNS Number : 9620Q
OPG Power Ventures plc
24 June 2020
24 June 2020
OPG Power Ventures plc
("OPG", the "Group" or the "Company")
Private Placement of Non-Convertible Debentures
Prepayment of Term Loans
OPG Power Ventures PLC is pleased to announce that the Group's
operating subsidiary, OPG Power Generation Pvt Limited ("OPG PG")
has raised Rs2.0 billion (approx. GBP21.2 million) through a
placing of 2,000 Secured Redeemable Non-Convertible Debentures
("NCDs"). The key terms of the NCDs are:
-- 9.85 per cent interest rate, payable semi-annually
-- repayable after three years
-- face value of each NCD of Rs1,000,000
-- NCDs to be listed on the 'Wholesale Debt Market' segment of the Bombay Stock Exchange.
Proceeds of the funds raised through NCDs were utilised to
finance principal repayments on the Group's existing term loans
through to June 2022.
In June 2020, in addition to repayment of Rs2.0 billion (approx.
GBP21.2 million) of term loans from the proceeds of the NCDs, the
Company also made a further prepayment of Rs0.61 billion (approx.
GBP6.5 million) funded from the Company's existing resources.
The issue of the NCDs will have a material positive impact upon
the Group's cash flow during the current uncertain trading period,
through a significant deferment of principal payments and the NCDs'
interest coupon is lower by c.1 per cent in comparison with the
existing term loans interest rate.
Following these transactions, the Company's long-term debt
amounts to GBP44.6 million, comprised of GBP21.2 million of NCDs
and GBP23.4 million of existing term loans, with scheduled
repayments spread from June 2022 to June 2024.
As previously announced COVID-19 and the lockdown has had a
severe impact on overall industrial activity in India as a result
of which electricity demand in the country has seen a significant
reduction during the first three months of FY21. However, power
generation is expected to increase gradually over the coming months
following the lifting of the second COVID-19 lockdown. The Company
has continued operations during the lockdown albeit with limited
plant load factor.
Arvind Gupta, Executive Chairman of OPG, commented:
"The issue of GBP21.2 million (Rs2 billion) of non-convertible
debentures has significantly improved OPG's liquidity position
which will enable the Group to improve management of its cash flows
during these uncertain times. Additionally, it will enable OPG to
resume cash dividend payments to the Company's shareholders in the
medium term. I am pleased to report that our long term, profitable
and sustainable business model remains unchanged."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
For further information, please visit www.opgpower.com or
contact:
+91 (0) 44 429
OPG Power Ventures PLC 11211
Arvind Gupta / Dmitri Tsvetkov
Cenkos Securities plc (Nominated Adviser +44 (0) 20 7397
& Broker) 8900
Russell Cook / Stephen Keys
+44 (0) 20 7920
Tavistock (Financial PR) 3150
Simon Hudson / Barney Hayward
-ends-
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END
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