Through rupee-denominated bond offering, Essar Power has raised Rs 750 crore in debt. Essar Power is a subsidiary of London-listed Essar Energy. The proceeds will be used to repay existing loans in the power business, particularly relating to new coal-fired projects. The new bonds issue will be listed on the Bombay Stock Exchange and will be repaid from 2022 to 2024.
Deepak Maheshwari, Chief Financial Officer, Essar Energy, said that the bond issue will allow the company's power business to benefit from longer debt maturity timeframes and lower interest rates compared to the existing debt facilities.
Essar Power has seven power plants in India and one in Algoma, Canada.