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Reliance Power gets $800 million loan from three banks

According to reports, after getting $1.1 billion from Chinese banks early this month, Anil Ambani firm Reliance Power has secured another $800 million or Rs 4500 crore from US Exim Bank, Standard Chartered Bank, Development Bank of Singapore and Mizuho Bank to fund its $4 billion Sasan UMPP.

The US Exim loan of $650 million comes at a fixed interest rate of 3.6% per annum against average domestic borrowing cost of 13.5% translating to savings of $418 million or Rs 2300 to the company, said a company official. The limited recourse financing by the US EXIM Bank with tenure of 14 years would meet the costs for import of mining equipment for the Sasan project from Caterpillar, USA.

“It is an extremely positive development for the Sasan project, our company and the Indian power sector. US EXIM financing along with other off-shore commercial banks is a strong recognition of the fundamental strength of Sasan UMPP and Reliance Power’s execution strengths,” said Reliance Power CEO Jayarama Prasad Chalasani adding that this $800 million financing along with financing from Chinese banks will support import of equipment for this project. After getting $1.1 billion from Chinese banks early this month, Anil Ambani firm Reliance Power has secured another $800 million or Rs 4500 crore from US Exim Bank, Standard Chartered Bank, Development Bank of Singapore and Mizuho Bank to fund its $4 billion Sasan UMPP.

The US Exim loan of $650 million comes at a fixed interest rate of 3.6% per annum against average domestic borrowing cost of 13.5% translating to savings of $418 million or Rs 2300 to the company, said a company official. The limited recourse financing by the US EXIM Bank with tenure of 14 years would meet the costs for import of mining equipment for the Sasan project from Caterpillar, USA.

“It is an extremely positive development for the Sasan project, our company and the Indian power sector. US EXIM financing along with other off-shore commercial banks is a strong recognition of the fundamental strength of Sasan UMPP and Reliance Power’s execution strengths,” said Reliance Power CEO Jayarama Prasad Chalasani adding that this $800 million financing along with financing from Chinese banks will support import of equipment for this project.

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