Reliance Power’s Sasan project gets RBI nod for Rs 11,000 crore ECB financing

Reliance Power Ltd. | Power Generation/Distribution | Power | BSE: 532939 | NSE: RPOWER

01 Oct 2011 Evaluate

Reliance Power has received an approval from the Reserve Bank of India (RBI) to raise $2.2 billion around Rs 11,000 crore from US Exim and Chinese banks for its flagship Sasan 3,960 megawatt ultra mega power project in Madhya Pradesh. The funding from Chinese banks also represents the first-ever project financing done by Chinese banks. In addition to the funding from US and Chinese banks, the Sasan project has also got $150 million financing from other sources.

Sasan Power, a fully-owned subsidiary of Reliance Power which is executing the flagship project, will receive $ 1.1 billion from Chinese barks including Bank of China, China Development Bank and Export Import Bank of China. The Export Import Bank of United States has approved funding of $917 million to Sasan Power as part financing of the project cost of the Sasan UMPP.

Reliance Power is delighted that these prestigious financial institutions in US and China have the confidence in its power generation business and are willing to provide long-term loans to them even in challenging global conditions. This will reduce its cost of debt and widens its source of funding for the Susan project.

Reliance Power is a part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally.