CAM advised a consortium of lenders led by Deutsche Bank AG and MUFG Bank on (i) an external commercial borrowing of upto USD 675 Million (ECB Facility) extended to JSW Neo Energy Limited (JSW Neo); and (ii) a hedge facility of upto USD 675 Million (Hedge Facility) from Deutsche Bank AG, MUFG Bank and Standard Chartered Bank. This facility was utilised by JSW Neo to part finance the acquisition of 4.7 GW renewable energy platform of O2 Power Pooling Pte. Ltd., a platform jointly established by EQT and Temasek. Notably, this is the largest renewable energy acquisition by JSW Energy till date.
This transaction is one of its kind to leverage ECB Facility to fund acquisition of a large scale renewable energy platform in India. The Transaction Team advised the ECB Lenders and Hedge Counterparties on the applicable legal framework (including RBI guidelines on overseas investment) for such acquisition finance also played a pivotal role in advising and assisting the ECB Lenders and Hedge Counterparties in structuring the collateral package and the turnover related provisions under the Inter-Creditor Agreement.
The Transaction Team was led by Ramanuj Kumar, Partner & Co-Head (Projects – Energy & Energy Transition) with support from Shrey Srivastava, Principal Associate and Snehil Ajmera, Associate.
Jian Johnson, Partner with support from Abha Mehta, Principal Associate advised the Hedge Counterparties in finalising the Hegde Documents and the Inter-Creditor Agreement.