KSK Mahanadi Power Signs 121.4 Billion Rupee Funding

KSK Mahanadi Power Co., a unit of KSK Energy Ventures Ltd., signed a 121.4 billion rupee ($2.6 billion) 17-year project financing loan to fund a power venture.

The term financing pays interest of 4.75 percentage points more than State Bank of India’s base rate, according to data compiled by Bloomberg. Rohit Mathur, the Hyderabad-based spokesman of KSK Energy Ventures, declined to comment.

The loan for the 3,600 megawatt project, in the central Indian state of Chhattisgarh, was with banks led by State Bank of India. The company has secured the total capital outlay of $3.6 billion for the project, KSK Energy’s founder group company KSK Power Ventur Plc said in a filing to London Stock Exchange on Sept. 20.

The project will be funded through $2.88 billion in debt and $720 million in equity, the filing said. IFCI Ltd, a New Delhi-based state-run lender, will hold 7.72 percent of KSK Mahanadi’s equity after investing $56 million in the project.

The other lenders in the syndicate are Andhra Bank, Axis Bank Ltd., Bank of India, Bank of Baroda, Canara Bank, Federal Bank and Housing & Urban Development Corp. of India, the data shows. The loan syndication started on Sept. 10, 2009, and the agreement was signed on Nov. 20.

To contact the reporter on this story: Anurag Joshi in Mumbai at ajoshi53@bloomberg.net

To contact the editor responsible for this story: William McSheehy at wmcsheehy@bloomberg.net

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