Infrastructure major GMR Infra has achieved financial closure for the refinancing of short term loan of $737 million by a five year facility. The refinancing was done by a combination of senior and mezzanine debt from a consortium of banks led by Axis Bank and ICICI Bank. The consortium also consisted of Bank of India, Bank of Baroda, Canara Bank, Exim Bank, Indian Bank, Indian Overseas Bank, and Syndicate Bank.
Interestingly, Wall Street Journal reported last month that GMR is looking to sell its stake in InterGen witha price expectation in the $1 billion range.
In October 2008, GMR Group had acquired 50% stake in InterGen NV, one of the major independent power producers (IPPs) in the world for $1.2 billion. A part of the acquisition cost was funded by the short term bridge loan for two years. The loan, due for repayment in October 2010, has now been refinanced well in advance of the due date.
Despite increasing spreads in the foreign currency markets, the pricing was achieved on competitive terms for a longer tenor of five years, said a GMR release. InterGen has twelve power plants representing a total generation capacity of 8,088 MW (6,254 net equity MW). InterGen is jointly owned by the Ontario Teachers' Pension Plan and GMR Infrastructure Ltd. InterGen’s plants are located in the UK, the Netherlands, Mexico, the Philippines and Australia. InterGen is also readying to accelerate its 4,000 MW expansion plans in UK, Netherlands, USA and Philippines.
Besides its stake in InterGen, GMR has thirteen power projects of which three are operational (823 MW) and ten (7648 MW) are under various stages of implementation. GMR Energy recently raised around $300 million in private equity funding led by Singapore soveriegn wealth fund Temasek, IDFC Private Equity and Ascent Capital.