CGPL, a wholly owned subsidiary of Tata Power completes refinancing of ECB loans

Coastal Gujarat Power Limited, a wholly owned subsidiary of Tata Power which implemented the 4000MW Mundra UMPP, has completed refinancing of the outstanding ECB loans amounting to ~USD 770 million (appx Rs. 5,500 Cr) through a mix of INR-denominated debt instruments and equity funding from the proceeds of divestment of non-core assets of the Company. The refinancing of USD loans of CGPL will help in rescheduling the cash requirements as well reducing the effective interest cost apart from reducing foreign exchange related volatility for CGPL. 

This is also expected to ease cash flow burden resulting from the continuing losses due to the continuing under-recoveries in the Mundra Ultra Mega Power Project.

Speaking on this initiative, Mr. Praveer Sinha, CEO & Managing Director, Tata Power, said, “ We have been looking at various options to improve viability of Mundra UMPP. This is one more step in the same direction as it reduces interest cost burden and cash flow burden on CGPL.”