Sterlite Power, a prominent power transmission developer and global services provider, has announced the successful refinancing of the Lakadia-Vadodara Transmission project loan within just 12 months of the project achieving full operational status in January 2023. The new financing arrangement, facilitated by HDFC Bank, IIFCL, and Bank of Baroda, will facilitate the prepayment of the existing project loan, totaling approximately INR 1840 crores.
The refinancing initiative secures a reduced interest rate of approximately 8.25% per annum, marking a significant enhancement compared to the previous terms. The tenure of the facility spans approximately 18 years. This achievement stands as a testament to the attractiveness of power transmission projects with stable, long-term cash flows, garnering considerable interest from financial institutions.
Pratik Agarwal, Managing Director of Sterlite Power, expressed his thoughts on this milestone, stating, “The refinancing of our commissioned projects aligns with our strategic resource reallocation efforts. Securing a more favorable interest rate for the commissioned project not only strengthens our bottom line but also delivers value to all stakeholders involved.”
The Lakadia-Vadodara Transmission project, known as LVTPL, establishes connectivity between the 765/400 kV substation at Lakadia and Vadodara through a 335 km long, 765 kV double-circuit transmission line. Spanning across seven districts in Gujarat and comprising 812 towers, this power transmission corridor stands as one of the largest transmission assets constructed in India to date.
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