Tata Power to raise $300 mn through its Coal SPVs

Tata Power signed an agreement on Wednesday to raise US $300 million (around Rs 1,350 crore) in Bhira Investments and Bhivpuri Investments — Coal Special Purpose Vehicles (SPVs) — through shares with differential rights (with no dividend rights) to be issued to Olympus Capital Holdings Asia.

Tata Power signed an agreement on Wednesday to raise US $300 million (around Rs 1,350 crore) in Bhira Investments and Bhivpuri Investments — Coal Special Purpose Vehicles (SPVs) — through shares with differential rights (with no dividend rights) to be issued to Olympus Capital Holdings Asia.

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Tata Power holds its interest in the KPC and Arutmin coal mines in Indonesia through these SPVs.

These funds could be utilised to secure further long term coal supplies by investing in coal mines or to reduce the outstanding debt in the SPVs, said the company in a statement issued on Wednesday.

The post money shareholding of Olympus Capital may be in the range of 14-15 per cent for an investment of US $300 million.