Rosa Power, a subsidiary of Reliance Power, has prepaid Rs 850 crore of its debt to Varde Partners. The company aims to be debt-free by the end of the current financial year.
New Delhi, Sep 25 (PTI) Rosa Power, a subsidiary of Reliance Power, has prepaid Rs 850 crore of its debt to Singapore-based lender Varde Partners, sources said.
Following Reliance Power's achievement of zero debt, Rosa Power is now on track to become debt-free.
The company aims to settle its remaining debt in the next quarter, completing the process before the end of the current financial year, they said.
Rosa Power, which operates a 1,200 MW coal-based thermal power plant in Rosa village near Shahjahanpur, Uttar Pradesh, has Varde Partners as its sole lender.
The strengthening of Rosa Power's balance sheet, along with a recent Rs 1,525 crore preferential issue, will support Reliance Power in exploring new business opportunities, particularly in the renewable energy sector.
Reliance Power's board approved the preferential issue on Monday, with over Rs 600 crore coming from its promoter company, Reliance Infrastructure, and the remaining Rs 900 crore from Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.
This preferential issue is expected to boost Reliance Power's net worth from Rs 11,155 crore to over Rs 12,680 crore, maintaining its zero-bank-debt status, according to company stock marketing filing.
The proceeds will be used to expand business operations, either directly or through investments in its subsidiaries.
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