IFIN has raised structured project finance for IL&FS Paradip Refinery Water Limited (IPRWL), a company strategically set up to meet the entire water requirement of the 15MTPA Paradip Refinery Project developed by Indian Oil Corporation in Odisha. The project transports about 100 MLD water from upstream of Zobra Barrage over Mahanadi River to the Paradip refinery.

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Innovations and Impact

  1. In 2010 and 2012, IFIN assisted the company in raising structured project finance to the tune of Rs 6859 mn.
  2. IFIN has successfully raised long term loan of Rs 7500 mn from a large bank by way of securitization of future receivables, for refinancing of outstanding senior debt, sub debt from sponsors and for meeting financing expenses. The loan is to be amortized over an extended tenor of 20 years. It will lead to saving in cost of debt by around 300 basis points.
  3. An annual reset on pricing provides further re-pricing flexibility and the option of prepayment with borrower.
  4. Additional liquidity is made available to the sponsors, combined with improved return on equity.

Timeline

July 2015 Refinance discussion initiated with various lenders
September 2015 Credit sanction from lender
September 2015 Documentation & disbursement

Location

Links

IL&FS Water

IL&FS Financial Services

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