Lanco Infratech to sell assets to reduce debt

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Lanco Infratech to sell assets to reduce debt

Lanco Infratech has announced plans to raise Rs200 billion (US$3.3 billion) by selling power plants with a total capacity of 3,000 MW.

The firm will use the funds from the sales to reduce debt, which stands at around Rs380 billion (US$5.93 billion). The firm expects to raise Rs50 billion of cash and help lessen Rs150 billion in debt.

Lanco Infratech has appointed, among others, Macquarie, SBI Capital Markets, Edelweiss, ICICI Securities and EY for the sale of assets from its power generation portfolio.

The firm's portfolio has a total capacity of 17,200 MW:

  • 3,600 MW of operating assets,
  • 4,600 MW of assets under construction and
  • 9.000 MW of assets under development

Several firms like the Adani group, JSW, TATA group and Reliance Power, and Power Tech have initiated due diligence of the assets.

Last week we reported that Adani Power had acquired Lanco Infratech’s 1,200 MW Udupi thermal power plant located at Mangalore Port, Karnataka, India. The transaction had a total value of Rs60 billion (US$992.4 million).

The 1,200 MW plant is the first independent power project (IPP) in the country based on 100% import coal with a captive jetty of four million tonnes per annum and an external coal handling system in the new Mangalore Port Trust.

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