Lanco Infratech to raise $2 bln for power plants

MUMBAI Mon Nov 26, 2012 11:05pm IST

Related Topics

Stocks

   

MUMBAI (Reuters) - Engineering and construction company Lanco Infratech (LAIN.NS) plans to raise $2 billion from Chinese banks and financial institutions to fund new power projects.

The fundraising will be led by state-controlled China Development Bank, which is to lend $600 million, Lanco Infratech said in a statement on Monday.

Chinese bank lending to Indian power companies is often on the condition that Chinese manufacturers supply equipment for the new projects.

The proceeds will be used on two power projects in Uttar Pradesh.

"For the past couple of quarters we have been working on strategies to address the liquidity concerns due to delay in receivables from utilities," Lanco Chairman L. Madhusudhan Rao said. "We are also in the process of addressing the debt equity ratio at the same time."

The two power projects will have a combined capacity of 2,640 mega watts, a Lanco official told Reuters, declining to be named because he is not authorised to speak to the media.

The fundraising is expected to be completed by the end of the year, the Lanco official added.

Chinese bank lending to Indian power companies is usually tied to the purchase of equipment from Chinese manufacturers.

Lanco Infratech shares were up 3.7 percent at the close, against a 0.2 percent rise for the BSE Sensex.

(Reporting by Sumeet Chatterjee; Editing by David Goodman)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Videocon d2h IPO

Videocon d2h IPO

Videocon d2h files for up to $113 million IPOs  Full Article 

Asian Economy

Asian Economy

Asian factories slow in Sept, push inflation ever lower  Full Article 

EBay Divests PayPal

EBay Divests PayPal

EBay follows Icahn's advice, plans PayPal spinoff in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage