Reliance Power set for $2.2 bn loans from US, China banks

Anil Ambani group firm Reliance Power today said it has received Reserve Bank of India's (RBI) approval for raising USD 2.2 billion from the US and Chinese banks, for the 3,960 MW-Sasan power project in Madhya Pradesh.

Of the total amount of funds, USD 1.1 billion would be extended by Chinese banks, including Bank of China, China Development Bank and Export Import Bank of China, Reliance Power said in a statement.

"The funding from Chinese banks represents the first-ever project financing done by Chinese banks," it added.

The Export Import Bank of United States has also approved funding of USD 917 million for the Sasan Ultra Mega Power Project (UMPP).

"We are delighted that these prestigious financial institutions in the US and China have the confidence in our power generation business and are willing to provide long-term loans to us even in challenging global conditions," Reliance Power CEO J P Chalasani said.

"It reduces our cost of debt and widens our source of funding for the Sasan project," he noted.

Sasan Power Ltd, a fully-owned subsidiary of Reliance Power, is executing the project.

Apart from USD 2.2 billion, Sasan project has also received USD 150 million funding from other sources, the statement said.

The first unit of Sasan power project is expected to be commissioned by January 2013.