CESC gets nod to raise Rs 2,000-cr term loans

KOLKATA: RPG flagship CESC on Tuesday said it has received shareholder approval to raise nearly Rs 2,000 crore of term loans in phases from select financial institutions and banks. The loans will be raised by mortgaging CESC assets to these FIs or banks. The funds will be used to finance a spate of upcoming CESC projects such as the 250 MW Budge Budge Unit III, the Budge Budge III power evacuation system and routine capex for existing generating stations.“All projects require to be funded through a ratio of debt and equity.

The Rs 2,000-crore loan, which will be raised by CESC in phases, is the debt portion being put in place,” said a senior CESC official. CESC’s shareholders have authorised the company board to mortgage its assets for term loans to be financed by IDFC, IDBI, ICICI Bank, UCO Bank and Punjab National Bank.

The CESC board is authorised to mortgage the company’s assets to IDFC for two term loans of Rs 58.8 crore and Rs 65 crore, respectively. Likewise, from IDBI, the RPG power utility plans to avail of two terms loans of Rs 50 crore and Rs 200 crore, respectively, by mortgaging some assets. A portion of CESC’s assets will also be mortgaged to ICICI Bank for three foreign currency loans of $20 million, $15 million and $50 million, respectively. Finally, some assets will also be mortgaged to UCO Bank to avail of a Rs 200-crore term loan. The company also plans to mobilise Rs 150 crore through term loans from PNB.