GuarantCo Provides $28.2M Guarantee for Essel Clean Solu
(Thomson Reuters ONE) -
The Largest Private Sector Energy Project in Nepal
LONDON, Feb. 17, 2015 (GLOBE NEWSWIRE) -- GuarantCo (http://www.guarantco.com)
has provided a NPR 2,785m ($28.2m equivalent) guarantee for Essel Clean Solu
Hydropower Private Limited, ('ECS'), to support the financing of the Lower Solu
project in the Solukhumbu district in Nepal. The project comprises an 82 MW run-
of-river hydroelectric power plant that will provide electricity to an estimated
3-4 million people and will help to alleviate the current power shortages in the
country. It is the largest private sector energy project in Nepal, the first
Independent Power Producer in the country financed by both international and
domestic financiers, and the first project financing involving an independent
financial guarantor. Construction works at the project site are expected to
start in March 2015, and the project is expected to be operational in 2019.
Logo: http://www.photos.apo-opa.com/plog-content/images/apo/logos/guarantco.jpg
With one of the largest untapped hydropower resources in the world (estimated at
/>80,000 MW), Nepal has the means to become a significant exporter of
electricity, but currently imports power and has one of the world's lowest per
capita electricity generation and consumption rates. The development of Nepal's
hydropower sector has been held back by, among other factors, a lack of
financing. ECS's success in tying up financing, particularly from local banks
with GuarantCo's guarantee, is expected to pave the way for others to follow.
ECS is sponsored by a consortium of Nepalese and Indian investors, led by Essel
Infraprojects Ltd, India and Clean Developers Pvt Ltd, Nepal, who were awarded
the right to develop the Lower Solu project in a competitive bidding process.
Due to the favourable geographical conditions of the project location, the
project is able to operate without the need for a large dam or long tunnel,
resulting in a relatively small environmental footprint. The project is forecast
to create over 1,000 jobs during construction and operations and will result in
significant development of the project area. A skills training program will be
undertaken to maximise local employment.
The debt financing to ECS is being provided by a consortium of international and
Nepalese lenders, led by Nederlandse Financierings-Maatschappij voor
Ontwikkelingslanden (FMO). The consortium includes Prime Commercial Bank Ltd (as
lead bank for the local debt tranche), DEG - Deutsche Investitions- und
Entwicklungsgesellschaft mbH, OPEC Fund for International Development, Belgian
Investment Company for Developing Countries SA/NV, Triodos Groenfonds N.V.,
Nepal SBI Bank Ltd, Jalvidhyut Lagani Tatha Bikas Company Ltd, Prabhu Bank
Limited and Siddhartha Bank Ltd. 90% of the debt being provided by the Nepalese
banks benefits from a credit guarantee from GuarantCo Ltd.
Chetan Sharma (President, Finance & Strategy of Essel Infraprojects Ltd) said:
"We are pleased to have our first infrastructure project in Nepal, our closest
neighbouring country. The project finance structure is very unique, where for
the first time international lenders have joined hands with Nepalese Banks. We
look forward for further investments in Nepal."
Ashish Garg (Executive Director of Clean Developer P Ltd) said: "This financing
is unprecedented and shall benchmark the next era of private sector led
hydropower development in Nepal. With majority Nepalese equity, energy for
domestic consumption and involvement of such a large team of foreign investors,
it is historic for Nepal."
Andrew Bainbridge, Chairman of GuarantCo said "GuarantCo has partnered with
local Nepalese banks to deliver a Nepalese Rupee debt solution that matches the
currency profile of ECS's revenues, thus contributing to the overall financing
requirement of the project and reducing risks stemming from currency
devaluation. Furthermore, by partnering with local institutions, GuarantCo
builds greater capacity in local markets and helps countries transition away
from undue reliance on foreign currency finance and development institutions. We
are excited to have our first project in Nepal, and look forward to supporting
further infrastructure development in the country."
Distributed by APO (African Press Organization) on behalf of GuarantCo Ltd.
For further enquiries, please contact: Jacqui Christian,
jacqui(at)jacquichristian.com
INFORMATION ON LEAD LOCAL DEBT ARRANGERS AND GUARANTCO:
ABOUT GUARANTCO
GuarantCo is an infrastructure fund, established by the governments of UK,
Netherlands, Switzerland and Sweden through the Private Infrastructure
Development Group to encourage infrastructure development in low and lower
middle income countries. GuarantCo provides guarantees to enable infrastructure
projects to access long tenor financing. GuarantCo's guarantees are denominated
in local currencies, except in fragile/ post conflict states, where it also
provides hard currency guarantees. GuarantCo is the largest local currency
infrastructure guarantor in the world and has expanded rapidly since receiving
ratings of AA- Fitch and A1 Moody's in 2014.
ABOUT PRIME COMMERCIAL BANK LIMITED (PCBL)
PCBL is 'A' category licensed commercial bank in Nepal. It has established
itself as an emerging player in financial sector of Nepal and ranks among
leading banks. Established by prominent business personnel and professionals
from diversified areas, it has the prime objective of providing 'Banking
Services to Everyone' and to play a pivotal role in new industries and projects
in the country where still large number of population are deprived of Banking
Services. Apart from other development projects, PCBL has financed 10 hydropower
projects in Nepal, including Lower Solu Hydropower Project, with commitments of
USD 38.8 million. The Bank's shares are listed and actively traded on the Nepal
Stock Exchange (NEPSE).
INFORMATION ON EQUITY SPONSORS
ABOUT ESSEL INFRAPROJECTS Essel Infraprojects Limited is a subsidiary of Essel
Group, one of India's biggest business houses with investments in infrastructure
& integrated utilities, media, publishing, packaging, technology enabled
services, wellness services and education. Essel Group has been in existence
since 1926 through its first venture in commodity trading and exports. Over the
years, the group has metamorphosed into a conglomerate and several of its
companies are listed. The group operates across the globe with a total employee
strength of 12,000 people.
ABOUT CLEAN DEVELOPERS Clean Developers Private Limited is a Nepalese
infrastructure company with a primary objective of carrying out various
infrastructure development activities. It develops urban infrastructure projects
in both residential and commercial segments. With diverse investments, its
promoters have interests in cement, foods, packaging, banking, trading and more.
OTHER FINANCIAL INSTITUTIONS PARTICIPATING IN THE DEBT FINANCING:
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) · Belgian
Investment Company for Developing Countries SA/NV · DEG - Deutsche Investitions-
und Entwicklungsgesellschaft mbH · Jalvidhyut Lagani Tatha Bikas Company Limited
· Nepal SBI Bank Ltd. · The OPEC Fund for International Development (OFID) ·
Prabhu Bank Limited · Siddhartha Bank Limited · Triodos Groenfonds N.V.
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: GuarantCo Ltd via GlobeNewswire
[HUG#1895061]
Unternehmensinformation / Kurzprofil:
Datum: 17.02.2015 - 12:04 Uhr
Sprache: Deutsch
News-ID 372080
Anzahl Zeichen: 8645
contact information:
Town:
London
Kategorie:
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"GuarantCo Provides $28.2M Guarantee for Essel Clean Solu"
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