Reliance Power Inks MoU With Varde Partners To Raise Debt Up To Rs 1,200 Crore, Shares Up 10%

In a latest development Reliance Power and its subsidiary have signed a pact with Varde Partners for availing of debt of up to Rs 1,200 crore.

According to a regulatory filing, Reliance Power said the company and its subsidiary have entered into an indicative Memorandum of Understanding (MoU) with Varde Partners for availing of debt of up to Rs 1,200 crore ($150 million) "for settlement and discharge and/ or acquisition and restructuring of certain financial debt availed by Reliance Power."

About Varde Partners: Varde Partners is a leading global alternative investment firm specialising in credit and credit-related assets. Varde Partners, founded in 1993, has invested through multiple credit cycles, building on its roots in special situations and distressed to invest more than $90 billion across the credit quality and liquidity spectrum in both public and private markets.

Värde currently manages over $13 billion in assets with teams in North America, Europe, and Asia Pacific focused on Corporate & Traded Credit, Real Estate, and Financial Services, according to its official website.

Reliance Power Stock Outlook: Soon after the announcement, shares of Reliance Power surged by 9.91% on BSE at 23.30 apiece. The 52-week high of the stock is Rs 23.75 apiece and 52-week low is Rs 10.98 apiece.

Reliance Power Market Capitalization: The company has a market capitalization of Rs 7, 922.29 crore at the time of writing the story.

The drawdown of the debt will be subject to finalisation and execution of binding documents and all requisite approvals, including regulatory approvals, the filing added.

The stock exchanges will be updated once the terms of the proposed financing are finalised and the definitive documents in relation to the proposed financing are executed, it further said.

About Reliance Power: Reliance Power Ltd, a part of the Reliance Group, is a leading private sector power generation and coal resources company.

The company has one of the largest portfolios of power projects in the private sector, based on coal, gas, hydro and renewable energy, with an operating portfolio of 5,945 megawatts.