Caparo Energy ‘s Indian subsidiary has closed a second tranche of mezzanine funding.
This second tranche of mezzanine financing, which is for a four-year term, of Rs1,500m is being provided by the Infrastructure Development Finance Company.
The terms of both tranches of mezzanine financing entail no equity dilution for Caparo Energy’s existing shareholders.
The board believes that this will result in enhanced equity returns for investors.
The company expects to repurchase/buy-back both tranches of mezzanine from internal cash flows and the issue of senior debt instruments, bonds or other debt refinancing, within three to five years.
The board believes that securing these two tranches of financing, totalling Rs5,000m, is a significant step forward for the business and anticipates that this additional funding, along with the company’s existing resources, would enable the company to develop approximately 700 MW of wind projects.