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

Xi's South Asia Visit

REUTERS SHOWCASE

Economic Pulse

Economic Pulse

Weak industry and stubborn inflation hinder India's economic recovery.  Full Article 

Lipitor Lawsuit

Lipitor Lawsuit

Pfizer, Ranbaxy win dismissal of lawsuit over generic Lipitor.  Full Article 

Losing Glitter

Losing Glitter

India's love affair with gold may be over, as prices slide.  Full Article 

Factory Data

Factory Data

China Aug factory output growth near six-year low.  Full Article 

New Ford Models

New Ford Models

Ford to launch four new car models in India over 18-20 months.  Full Article 

Sales Forecast

Sales Forecast

Honda India two-wheeler unit sees FY15 sales rising more than a fifth.  Full Article 

Dispute Resolved

Dispute Resolved

Airbus gets Qatar A380 okay, but questions on A320 test.  Full Article 

Reuters India Mobile

Reuters India Mobile

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