Coastal Gujarat Power completes refinancing of ECB loans

Capital Market 

Coastal Power, a wholly owned subsidiary of which implemented the 4000 MW UMPP, has completed refinancing of the outstanding ECB loans amounting to ~USD 770 million (approx.

Rs. 5,500 cr.) through a mix of INR-denominated debt instruments and equity funding from the proceeds of divestment of noncore assets of the Company. The refinancing of USD loans of CGPL will help in rescheduling the cash requirements as well reducing the effective interest cost apart from reducing foreign exchange related volatility for CGPL.

This is also expected to ease cash flow burden resulting from the continuing losses due to the continuing under-recoveries in the Ultra Mega Power Project.

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First Published: Fri, September 28 2018. 16:22 IST