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GVK Power eyeing Oz, int'l banks for debt of over $4 bn
GVK Power & Infrastructure today said it is looking at Australian as well as international banks for raising funds to make investment of about USD 6-7 billion in coal assets that it is acquiring from Hancock.�����
"We will tap Australian banks for funds and we will tap international banks. Indian banks, I really don't know if they would like to take non-recourse finance risks in a country which is other than India.�
"I think possibly, they will shy away a little bit, but European and Australian banks (for project finance) these are the targets are far as debt is concerned," GVK Power's Chief Financial Officer Issac George told reporters here.�
Last week, GVK Power, part of diversified GVK group, said that it would acquire coal assets and related logistics in Australia from Hancock for USD 1.26 billion.�����
"Typically what happens is that the USD 6 to 7 billion what I talked about will be funded in a debt-equity ratio of 30:70. So, USD 1.8 billion will be in equity and USD 4.2 billion will be debt," he noted.�����
George said GVK has already tied up finances to fund acquisition of Hancock assets. "Indian banks have funded it. I cannot name them. They were very particular that their names should not come out. So there are four big Indian banks that had actually funded this," he added.�
According to him, a Indonesian coal company is in talks with GVK Power for partnership to jointly develop the mines in Australia.�����
"But we have not taken a call because we have too many options with us at this moment. So we will evaluate this.�����
"I just want this transaction (Hancock deal) to be closed. After that we will have ample time of 18 months for financial closure," George noted.�
Hancock coal assets have resources to the tune of 7.9 billion tonnes and would help in providing GVK group with fuel supplies for its proposed power projects in India.�����
GVK would acquire 79% stake in Alpha Coal as well as Alpha West Coal projects located in Queensland, Australia, while the 21% would be retained by Hancock Propsecting Pty Ltd.�����
Further, it would buy out Kevin's Corner Coal project and proposed rail and port projects, related to these coal assets.
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