The renewable energy arm of one of the leading private power generation companies in India has raised fresh funding.
Tata Power Renewable Energy raised Rs 575 crore (US$86 million) through the issuance of non-convertible debentures (NCDs) on a private placement basis. The funds raised will be use to retire high-cost debt in the company. Tata Power Renewable Energy is a wholly owned subsidiary of Tata Power. which is listed at the Bombay Stock Exchange as well as the National Stock Exchange.
The company also raised $63 million in a similar manner earlier this year with the same goal – to retire debt.
Tata Power Renewable Energy was recently launched as a separate company out of Tata Power, which transferred control of renewable energy assets to its new subsidiary. Tata Power Renewable Energy Limited controls an operational capacity of 720 MW and an under-construction capacity of 250 MW. The new company may also look for equity investments and scout for candidates for acquisition.
Tata Power was also reportedly in talks with one of the largest renewable energy project developers in the country to acquire the latter’s assets. As per the deal, Tata Power would acquire 1,152 MW of wind and solar power capacity. This includes 685 MW of operational solar and wind energy capacity, 200 MW of capacity set to be commissioned by June’s end, and another 257 MW in capacity likely to come online by Q4 2016. These renewable energy assets are likely to be transferred to Tata Power Renewable Energy.
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