Sterlite Grid refinances project loan for North-East power projects

NEW DELHI: Sterlite Grid, part of Sterlite Technologies, has announced refinancing a loan for India's first Ultra Mega Transmission Project - East North Interconnection Company Ltd within three months of the project becoming fully operational in November 2014.

"Sterlite has refinanced East North Interconnection Company Limited project loan. The new financing arranged by Axis Bank, consists of a long-term loan of Rs 925 crore," the company said in a statement.

With this transaction, Sterlite has achieved reduction of 175 basis points in the interest cost on per annum basis and has released more than Rs 150 crore after repaying its outstanding debt obligations to the existing financial institutions, the statement said.

East-North Interconnection Company Limited (ENICL) was a special purpose vehicle created for the East-North interconnection mega transmission project.

The East-North Interconnection will generate predictable and stable cash flows for more than two decades.

"The refinancing arrangement has not only brought down our cost of finance substantially but it has also validated our strategy of capital churning towards growth as a power transmission infrastructure developer," Pravin Agarwal, Chairman, Sterlite Grid Limited said in the statement.

Sterlite has six transmission projects in portfolio, out of which, ENICL, country's first Ultra Mega Transmission Project was recently commissioned.