GMR Energy; Singapore Power Project

GMR Ties Up Funds for S’Pore Power Project

GMR Energy (Singapore) Pte Ltd, a subsidiary of GMR Infrastructure, has tied up funds for its 800 mw combined cycle project at Jurong Island, Singapore.

Six International Banks such as Axis Bank Ltd, CIMB Bank Berhad, KFW IPEX-Bank Gmbh, National Australia Bank Limited, Standard Chartered Bank and WestLB AG acted as lead arrangers to the transaction.

“The financing package comprises S$670mn of a term loan facility and a $270 mn credit and working capital facility with a tenor of 17 years,” said GMR Infrastructure. The $1 bn power facility is GMR’s first independent power project (IPP) outside of India. “ The power facilities, featuring Siemens’ latest F-class gas turbines, will be designed and constructed by a Siemens/ Samsung Consortium. Fueled by re gasified LNG, the power plant is scheduled for commercial operation in 2013,” the company. GMR Energy plans to raise Rs 640 crore debt for its solar power and transmission projects in Gujarat and Rajasthan, which will help the company achieve financial closure.

The Bangalore-based infrastructure company currently has 13 power projects of which three are operational and ten are under various stages of implementation. This is expected to multiply its current power generation capacity to 6,000 mw from current 808 mw in the next 3-4 years.

Last year, GMR sold 50 % stake in U.S.-based utility Intergen NV to a consortium led by China Huaneng Group for $1.23 billion. The company said $1 billion of this would be used to cut debt. The company bought the stake for $1.1 billion in 2008.

The energy and airport verticals contribute 38% and 41%, respectively, to the company's total revenue, followed by roads at 7% and EPC at 9%. The company's net debt as on December 31, 2010, stood at . 14,628 crore.

Source: Economic Times