According to reports, Khaitan & Co recently assisted Yes Bank Limited in providing Rupee Loan Facility amounting to INR 840 million, to Integrated Coal Mining Limited for developing and setting up a Solar Photovoltaic Grid Interactive Plant of 9MW capacity at Kutch in Gujarat.
Apart from the loan, the bank also provided financial assistance by way of issuance of letter of credit and annually revolving letters of undertaking to Integrated Coal Mining Limited.
Total consideration of the transaction came to USD 18 million approximately.
This transaction is one of the first few solar project finance transactions in the country. Apart from that, this transaction has also highlighted the diversification taking place amongst the infrastructure companies.
Partner Amitabh Sharma for Khaitan & Co, conducted due diligence on the project and in addition drafted, negotiated and finalized the rupee facility agreement and other financing and security documents. The Firm also advised Yes Bank on issues related to creation of security, sponsor support undertaking, escrow structure etc.