GMR’s Singapore power project gets financial close
GMR Energy (Singapore) Pte Ltd, a subsidiary of GMR Infrastructure Ltd, has reached financial close on its flagship 800 MW combined cycle project at Jurong Island, Singapore.
The financial close follows shortly after a ground breaking ceremony held on 5th June, 2011. This power facility is GMR’s first independent power project (“IPP”) outside of India. At a development cost of over S$1 billion, it is one of the single largest investments made by an Indian company in Singapore.
“I am delighted to receive the banking community’s strong support. It clearly demonstrates their confidence in the project. The financing structures are unprecedented in terms of complexity and tenor and will set a new benchmark for the power sector. With the support of all stakeholders, we were able to execute the financing documents, satisfy all conditions precedent and attain the first drawdown of funds within a matter of days. This impressive achievement is a good start and augurs well for the project,” said GM Rao, Group Chairman, GMR Infrastructure.
Six International Banks acted as Mandated Lead Arrangers to the transaction, namely Axis Bank Ltd, CIMB Bank Berhad, KfW IPEX-Bank Gmbh, National Australia Bank Limited, Standard Chartered Bank and WestLB AG. Norton Rose (Asia) LLP and Lee & Lee Advocates & Solicitors acted as legal advisers to the lenders whilst White & Case Pte Ltd and Rajah & Tann LLP provided legal advice to the sponsor. The financing package comprises S$670 million of a term loan facility and a US$270 million credit and working capital facility with a tenor of 17 years.
‘‘Standard Chartered Bank is proud to have worked with five other banks to provide financing to GMR’s first IPP project in Singapore. We were able to close the transaction within a short period of time thanks to the great support of GMR’s team and the tireless efforts of advisers. We shall continue to seek ways to support GMR in their endeavors in expanding their businesses in the region,” said Conor McCoole, Managing Director, Head of Project Finance, and Asia of Standard Chartered Bank.
The power facilities, featuring Siemens’ latest F-class gas turbines, will be designed and constructed by a Siemens/Samsung Consortium. Fueled by re gasified LNG, the power plant is scheduled for commercial operation in 2013.