GMR Power Extends Rs 228 Crore Corporate Guarantee To IREDA

GMR Power & Urban Infra Ltd. has extended corporate guarantees to Indian Renewable Energy Development Agency Ltd., for an amount of Rs 228 crore.

The corporate guarantee is extended for issuing counter guarantee in favour of a scheduled commercial bank and for the benefit of three SPVs of GMR Smart Electricity Distribution Ltd, which is a wholly owned subsidiary of the company.

The guarantee will be used for raising funds for smart metering projects in Uttar Pradesh. The order received in September this year includes supply, installation, integration, commissioning and maintenance of 50.17 lakh smart metres in the Purvanchal area. The project worth Rs 5,123 crore is targeted to be completed in a span of 10 years.

This comes after the company earlier this month extended corporate guarantee to GMR Consulting Services Ltd., a subsidiary of GMR Power for an amount of Rs 550 crore. The guarantee was in respect to NCDs of equivalent amount by GCSL to Credit Solutions India Trust on a private placement basis. The said funds would be used for part repayment of external debt and towards investing new business opportunities.

The shares of GMR Power & Urban Infra on Friday closed at Rs 56.10, with a 2.47% jump. This compares to a 0.22% decline decline in the benchmark Nifty 50.