Deal Closed | Power Finance Corporation Limited | Term Loan Facility

Sterlite Power secures INR 2070 crores funding from PFC for VNLTL project

The details of the deal are as under:

Sector: Banking and Finance

Completion Date: 29-October-2020

Name & Contact Details of Client: Power Finance Corporation Limited

Deal Description: Khaitan & Co acted as Lender's legal counsel in relation to the rupee term loan of INR 2069,58,00,000 (Rupees Two Thousand Sixty Nine Crores and Fifty Eight Lacs Only) to be provided by Power Finance Corporation Limited to Vapi II-North Lakhimpur Transmission Company Limited for the purpose of among others, setting-up and implementing a transmission system of Western Region Strengthening Scheme-XIX (WRSS XIX) and North Eastern Region Strengthening Scheme-IX (NERSS-IX) having route length of approximately 176 Km. 

Total Consideration: INR 2070 Crores (approx.) (USD 277 million (approx.))

Team Members: Siddharth Srivastava (Partner), Harshit Khare (Principal Associate), Raunak Singh Rahangdale (Senior Associate), Rashneet Kaur (Senior Associate) and Shobhit Batta (Associate)

Role of Firm: Khaitan & Co acted as the lender's legal counsel.

We assisted the parties in drafting, negotiating and finalising the financing documents, drafting of resolutions and certificates required from the obligors, review of the legal pre-commitment and pre-disbursement conditions and issuance of legal opinion on the financing documents. We also conducted due diligence on key project documents and highlighted key lender specific issues.

Unique Feature of Transaction: This project is an important inter-state transmission system. It connects the transmission system of Western Region Strengthening Scheme and North Eastern Region Strengthening Scheme. The entire debt funding of the project is secured from Power Finance Corporation Limited which is one of India’s largest power sector lenders. The project will supply clean and green energy from solar, nuclear and hydropower to western and northeastern regions of India.