Lanco Infra to raise USD 2bn from Chinese banks, FIs
Infrastructure company Lanco Infratech has entered into a memorandum of understanding with state-owned China Development Bank to arrange USD 2 billion debt for its Anpara Phase II and Himawat power projects, each having a generating capacity of 2x660mw.
November 26, 2012 / 17:24 IST
Moneycontrol Bureau
Infrastructure company Lanco Infratech has entered into a memorandum of understanding with China Development Bank to arrange USD 2 billion debt for its Anpara Phase II and Himawat power projects, each having a generating capacity of 2x660mw.Out of the total USD 2 billion to be raised, China Development Bank will contribute USD 600 million, while the rest will be syndicated by the state-owned bank from other Chinese lenders and FIs (foreign investors), Lanco said on Monday."This is going to help us in improving the economies of the project and shall help us in completing the power projects within the stipulated time," L Madhusudhan Rao, chairman, said.China Development Bank has already sanctioned USD 200 million buyers' credit for Amarkantak 3 and 4, Babandh and Vidarbha power projects being developed by Lanco group. Lanco Infratech is one of India's largest private power producers with an operating capacity of 4,740 mw and a further 4,636 mw under various stages of execution.Rao said, for last two quarters the company has been working on strategies to address the liquidity concerns due to delay in receivables from utilities. "We are working closely with utilities so that receivables can come through, which is likely in the coming days," he said.The company will also address the debt-equity ratio at the same time, he added.Lanco Infratech had reported a consolidated net loss of Rs 136 crore in the second quarter, down from Rs 259 crore in the year ago quarter. As of September end, the group had receivables from various state electricity utility companies and other customers against sale of power aggregating to Rs 3,153.2 crore. It also had Rs 2,588.03 crore in current maturities of long term borrowings due for repayment in next 12 months and other net current liabilities of Rs 1,987.60 crore.Lanco Infratech shares were up near 3 percent at Rs 12.55 on NSE, post the announcement in afternoon trade. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
