GMR Energy (Singapore) achieves financial closure

BANGALORE: GMR Energy (Singapore) Pte Ltd, a subsidiary of GMR Infrastructure Ltd, has achieved financial closure on its 800MW combined cycle power project ( coal and steam project) at Jurong Island, Singapore, the company disclosed on Friday.

The project is being built at an estimated cost of $1 billion and is the largest investment made by an Indian company in Singapore. To execute this project, GMR arm will receive a term loan of S$670 million and S$270 million credit and working capital facility with a tenor of 17 years, the company said.

Financial closure has been reached with six international banks including India’s Axis Bank, CIMB Bank Berhad, KfW IPEX-Bank Gmbh, National Australia Bank Limited, Standard Chartered Bank and WestLB AG.

The power facilities, featuring Siemens’ 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 has 16 power projects of which 3 are operational and 13 are under various stages of implementation and 9 road projects, of which 6 are operational and 3 are under construction.

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 Rs 14,628 crore.