CLP India signs new pooled financing structure with banks for wind farms

NEW DELHI: CLP India has pooled cash flow of its wind projects to mitigate risks and ensure security to lenders. The company on Monday announced signing of the new pooled financing structure for its wind assets with three Standard Chartered Bank, IDBI Bank Ltd and IDFC.

Company managing director Rajiv Mishra said pooled financing will help secure CLPIndia's current and future assets and mitigate the inherent risk arising out of the unpredictable nature of wind projects' output.

"This new, innovative approach to financing our wind projects will strengthen our competitiveness and business performance in the Indian market and will aid the growth we have planned for the future," Mishra said

The company was so far following the project financing structure of financing where the cash flow is restricted to a specific project.

Mishra said the company would move wind projects to the pool as and when they get commissioned.CLP India expects to add 250 mw - 300 mw of wind projects every year.

CLPIndia Director Finance and Chief Financial Officer Samir Ashta said the standardisation of documentation as a result of this approach, will lead to quicker financial closures that will enhance overall efficiency and effectiveness of the financing process.

CLPIndia, a wholly owned subsidiary of Hong Kong-listed CLPGroup owns 3,000 mw power projects in the country.