GMR Energy (Singapore) Pte Ltd, a subsidiary of GMR Infrastructure Ltd, has achieved financial closure on its 800MW combined cycle power project (coal and steam project) at Jurong Island, Singapore, the company disclosed on Friday.
The project is being built at an estimated cost of S$1 billion and is the largest investment made by an Indian company in Singapore. To execute this project, GMR arm will receive a term loan of S$670 million and $270 million credit and working capital facility with a tenor of 17 years, the company said.
Financial closure has been reached with six international banks including India’s Axis Bank, CIMB Bank Berhad, KfW IPEX-Bank Gmbh, National Australia Bank Limited, Standard Chartered Bank and WestLB AG.
The power facilities, featuring Siemens’ 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.
GMR Infra scrip was up 0.3 per cent at mid-day trading on BSE.
GMR Infrastructure Limited is the infrastructure holding company formed to fund the capital requirements of various infrastructure projects in the GMR Group’s energy, highways and airport business. It undertakes the development of the infrastructure projects through its various subsidiaries.
The company has 16 power projects of which 3 are operational and 13 are under various stages of implementation and 9 road projects, of which 6 are operational and 3 are under construction.
Last year Temasek, the private investment company owned by the government of Singapore, had invested $200 million in GMR Energy Ltd, the main power arm of GMR Infrastructure.