Lanco Infra wins IFC credit for power projects

Hyderabad: Lanco Infratech Ltd has secured a $150-million line of credit from IFC, Washington, recently that will help the company part finance some of the power projects at various stages of execution.

In Lanco Amarkantak, a 600-MW project now under way, IFC had invested in five per cent equity and other investor includes German investment arm DEG, part of KFW, which has taken 10 per cent stake.
The Managing Director of Lanco Infratech Ltd, Mr G. Venkatesh Babu, said, “we have long-term engagements with IFC and this additional commitment of $150 million reinforces their commitment to be part of the projects developed by the Lanco Group”.

Lanco has structured most of the power projects with 80:20 debt equity structure and achieved financial closure for about 6,000 MW of the total 13,000 MW under various stages of implementation and clearance, he said.

“We have also bid for the Telia ultra mega power project planned in Jharkhand. This project is being pursued in partnership with Genting. To meet the coal requirements for coastal projects, we are negotiating with mines in Indonesia, South Africa and Australia,” he said.

Lanco is in parleys with some private equity firms based in the US to divest part of the stake and raise about $200 million (about Rs 800 crore) before December 2008.

“We are discussing with private equity firms to augment funds for real estate projects now under implementation. There has been growing interest of PE firms in picking up stake and partnering with Indian companies in real estate ventures,” he said.