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AIM-listed independent power producer Indian Energy Ltd, that owns and operates wind farms in India, has achieved financial closure of the project finance with State Bank of India for its 16.5 MW wind farm at Theni in Tamil Nadu.

The country’s largest lender State Bank of India has underwritten the entire debt facility of Rs 68 crore (GBP 9.97 million) and SBI Capital Markets Limited acted as lead arranger and advisor.

As a part of the finance terms, certain board members of Indian Energy who also owns shares in the company-- Rupert Strachwitz, Pankaj Agarwal and James Pockney have committed to the lender that they will not sell their shares in the company till the time the project finance is repaid.

Last December, Indian Energy had entered into an agreement with ReGen Powertech Private Limited for the construction of a 49.5 MW wind farm at Theni. The project is being constructed and commissioned in two phases.

The first phase involves construction of 16.5 MW capacity and is scheduled to be fully commissioned by June this year. As per the company disclosure, first three of the eleven turbines have been commissioned and are generating power to the grid.

Indian Energy has entered into a 20-year power purchase agreement with the Tamil Nadu Electricity Board for the sale of power at a price of Rs 3.39 per kWh.

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