Reliance Power seeks $6 billion debt

Anil Ambani Group's Reliance Power Ltd has asked banks to arrange $6 billion (Rs 24,000 crore) of syndicate loan required for funding its ongoing and proposed projects in the power sector.

"We have mandated certain banks and financial institutions to arrange up to 6 billion dollars in syndicated loans for us on a secured basis to fund the identified projects," the company said in the draft red herring prospectus filed with market regulator Sebi on Thursday.

Macquarie Bank, ABN-Amro NV and Deutsche Bank have each arranged $2 billion for Reliance Power.

The company has plans to raise Rs 76,472.80 crore (Rs 764.72 billion) in debt to fund its 12 projects that are currently under various stages of development.

The loan would be in addition to the about Rs 12,000 crore (Rs 120 billion) which the company expects to raise from the proposed public issue, which would surpass DLF's nearly Rs 9,200 crore (Rs 92 billion)

IPO.

Reliance Power has lined up 12 medium and large sized power projects with a combined planned installed capacity of 24,200 MW.

According to the DRHP, the identified project sites are located in western India (12,220 MW), northern India (9,080 MW) and northeastern India (2,900 MW).

The power sector projects include six coal-fired projects (10,620 MW) to be fueled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand.