Business OpportunitiesIDBI Bank yet to begin Rs 13,000 cr syndication for RPower
IDBI Bank, which has been mandated to raise Rs 13,000 crore syndicated loan for Reliance Power"s Krishnapatanam Ultra Mega Power Project (UMPP) has put the process on hold.
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RPower has designated IDBI Bank as the lead arranger for the syndication. The bank is likely to take few more weeks to begin the syndication process, a source close to the development told PTI.
The lender was supposed to approach other banks early this month to join the consortium but is yet to start the process owing to the prevailing market conditions, the source said.
"The bank was supposed to approch other lenders early this month. However, the process (of raising the amount) has been held back for the time being. It may take a few more weeks to commence," the source said.
Reliance Power was not available for comments.
IDBI Bank has already committed its part of the Rs 13,000 crore loan and will be primarily looking at the Rupee part of the debt.
Apart from IDBI Bank, Power Finance Corporation (PFC) is understood to have given inprinciple nod to join the bank consortium, the source said.
IDBI Bank could be approaching leading banks such as State Bank of India and ICICI Bank to rope into the consortium and expects to complete the deal in a period of six to seven months.
"It is a large syndication. Participation from more banks is needed to fund such a large loan," the source said.
However, IDBI bank is understood to have no plans to approach any of the foreign lenders for the pooling.
The Krishnapatanam project will have 4,000MW power generating capacity. This is one of the three UMPPs with 4000MW capacity to be set up by Reliance Power. The other two are Sasan and Thilaiya.