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JSW to Invest Rs 2,200 Crores in Wind Power Project in Tamil Nadu

JSW plans to raise Rs 2,200 crore through bank loans to fund a 450 MW wind power project in Tamil Nadu. JSW Renew Energy Two Ltd. (JRETL) is a subsidiary of JSW Future Energy, placing the power plants at Tuticorin and Dharapuram in Tamil Nadu state. The offered term loan can be payable in over 70 quarterly instalments, starting after 12 months from the completion or commissioning date, whichever is earlier. The interest rate on the term loan is floating, exposing the cash flows to interest rate risk.

The project has moderate-to-low equity risk. The total equity needed is Rs 731.25 Crores. As of December 20, 2021, the sponsors had given the equity share of Rs 158.93 Crores. With the proposed term sheet, the sponsors will bring in an extra Rs 82.38 Crores before the first debt disbursement. The rest of the equity portion will be as per the proposed implementation schedule of the project.

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