Deal #10369

900 MW Arun-3 Hydro-electric Project

The project inked financial closure agreement with State Bank of India (SBI), Export-Import Bank of India (EXIM), Punjab National Bank (PNB), Canara Bank, Union Bank of India from India and Nepali banks Everest Bank and Nabil Bank in Kathmandu on Thursday. The seven banks have pledged a total of Rs 101.34 billion to the project in the form of structured debt. The total debt tied up with the banks is Rs 78.60 billion plus Rs 22.74 billion stand-by line of credit (if required), according to a statement issued by the project. While Indian banks are lending Rs 85.98 billion, Nepali banks will be extending credit of Rs 15.36 billion to the mega project. The Indian banks will levy interest rate of 8.35% whereas Nepali banks are charging 8.80% interest rate. While banks are financing 70% of the project cost, remaining 30% will be direct equity from Sutlej Jalvidyut Nigam Ltd of India.