Afour-bank consortium has provided working capital facilities of ₹30.5 billion (US$450 million) to Alstom Bharat Forge Power. The consortium was led by State Bank of India and included IDBI Bank, Axis Bank and ICICI Bank.
New Delhi-based Lex Favios advised the consortium on drafting, vetting and negotiating the facility agreement, inter-creditor agreement, authority letters, security trustee agreement, deed of hypothecation, indenture of mortgage, omnibus counter-guarantee and other related undertakings.
Dewan told India Business Law Journal that the size of the financing by Indian banks was significant. The loan was arranged to part-finance a project in Gujarat, “envisaging the setup of a manufacturing facility of sub-critical and super-critical turbine generator islands and components with an installed capacity of 3,000 MW in [Gujarat Industrial Development Corporation’s] Sanand industrial estate in Ahmedabad”.
Dewan added that the loan documents gave the lenders power to review and restructure the management in order to revive the borrower’s company in the event of default, in addition to other rights.
Luthra & Luthra advised Alstom Bharat Forge.