Sri Lanka India coal plant seeks debt finance: report

Dec 13, 2011 (LBO) – Sri Lanka’s Trincomalee Power Company, a joint venture between state-run Ceylon Electricity Board and India’s NTPC Ltd, has approached banks for a 385 million US dollar loan, a media report said. Bloomberg newswires, citing an undisclosed source said the 550 million US dollar plant would be financed with 406 million US dollars of debt.

The report quoted NTPC commercial director I J Kapoor as saying loans would be organized after a feasibility report is approved by the firm’s board on January 31.

The plant will be in Muttur, off the Tricomallee harbhour in Sri Lanka’s north east coast.

The Indian government is giving a 200 million dollar loan to Sri Lanka to cover a 75 million dollar equity investment by the cash-strapped CEB and for the utility to build infrastructure to take off power from the plant.