Lanco Infratech to raise $2 bln for power plants
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)
- Tweet this
- Share this
- Digg this
- China's Xiaomi hopes Mi 4 smartphone can take on Apple
- Jet Airways chairman says looking to restructure debts, talking to bankers
- Nifty hits record high on foreign buying, higher Asian stocks
- Rebels likely downed Malaysian jet 'by mistake' - U.S. officials
- U.N.'s Pillay says Israel may be committing war crimes
The Nifty rose to a record high on Wednesday, led by gains in blue-chips such as ICICI Bank on continued foreign-investor buying, while higher Asian shares also helped sentiment. Full Article
Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs Full Article
Jet Airways chairman says looking to restructure debts, talking to bankers Full Article
Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec Full Article
Supreme Court could allow Sahara boss to conduct asset sale talks, company says. Full Article
Five held in China food scandal probe, including head of Shanghai Husi Food Full Article