Lanco Infratech Limited (LITL), a leading integrated infrastructure conglomerate, on Monday announced that it will raise $2 billion from Chinese banks and financial institutions for power projects.
The company has entered into a memorandum of understanding (MoU) with the China Development Bank (CDB), a bank owned by the Chinese government, to arrange $2 billion debt for two power projects - Anpara Phase II and Himawat, each having capacity of 2x660 MW with supercritical boiler technology.
Out of $2 billion, the CBD has committed to contribute $600 million while it will syndicate the balance from Chinese banks and FIs, said a company statement.
K Raja Gopal, CEO, Lanco Power Limited and Zheng Zhijie, governor of CDB signed the MoU.
The CDB has already sanctioned $200 million buyers' vredit for Amarkantak III and IV, Babandh and Vidarbha power projects being developed by Lanco Group.
CDB is the largest Chinese development banking institution and one of the leading international bank with total assets exceeding $1.1 trillion. It has sanctioned over $7 billion to Indian corporations and has an outstanding amount of over $4.3 billion.
LITL is one of the largest private sector IPPs in India having an operating capacity of 4740 MW with another 4636 MW under various stages of execution.
The company has a target of holding 13000 MW operating capacity by 2015. The company has an EPC order book of Rs28,500 crore.