GMR freezes debt for Singapore power plant

GMR Energy (Singapore) Pte Ltd, a subsidiary of infrastructure major GMR Infrastructure, has achieved financial closure for its flagship 800 mw combined cycle project at Jurong Island, Singapore.

The financing package comprises a term-loan facility of S$670 million (Rs2,450 crore) and a credit and working capital facility of $270 million (Rs1,202 crore) with a 17-year tenor.

The work on the project, which is GMR’s first independent power project outside India, was commenced on June 5. At a development cost of over S$1 billion, it is one of the single-largest investments by an Indian company in the island-state.

Six banks — Axis Bank, CIMB Bank Berhad, KfW IPEX-Bank Gmbh, National Australia Bank, Standard Chartered Bank and WestLB AG - were lead arrangers for the transaction.

The power facilities, featuring Siemens’ F-class gas turbines, will be designed and constructed by a Siemens/Samsung consortium. Fuelled by regasified LNG, the power plant is scheduled for commercial operation in 2013.

“The financing structures are unprecedented in terms of complexity and tenor and will set a new benchmark for the power sector. With the support of all stakeholders, we were able to execute the financing documents, satisfy all conditions and attain the first drawdown of funds within days,” GM Rao, group chairman of GMR Infrastructure, said.

The infrastructure major earlier had made an attempt to expand its footprint in power sector overseas through the acquisition of equity in Intergen, which it later exited.

GMR Infra, through its various subsidiaries in India, has 13 power projects under construction and aims to add 1,768 mw capacity in the current fiscal by commissioning three units at Maharashtra, Andhra Pradesh and Orissa.