India’s largest bank to down sell part of loan given to Adani Power of Rs…, for acquisition of…

State-run bank, State Bank of India (SBI) is in talks with other banks to down sell a part of Rs 1800 crore loan it had given to Adani group’s company to acquire a thermal power company, the people

State-run bank, State Bank of India (SBI) is in talks with other banks to down sell a part of Rs 1800 crore loan it had given to Adani group’s company to acquire a thermal power company, the people familiar with the development said. 

As per The Economic Times report, The state-run bank had doled out Rs 1800 crore to Gautam Adani-led Adani Power to acquire Lanco Amarkantak Power, a 600 MW operation thermal power company. The people who are in know about the development further added that the loan was offered for a term of 12 years and three months, and it was linked to the bank’s six-month MCLR or marginal cost of lending rate. 

The loan’s interest rate is fixed at 10.5%. Now, the country’s largest bank has initiated talks with other banks for Rs 1200 crore, the individuals said. 

Both SBI and Adani Group did not utter a word on the development. 

As per reports, The Adani Power had acquired Lanco Amarkantak Power by investing Rs 4101 crore under the corporate insolvency process. The Economic Times claimed that it was the first to break the story that Adani’s bid helped them bag the acquisition as the other players like Reliance Industries and Power Finance corporation did not take part in the bidding process. 

Lanco Amarkantak has two units of 300 MWs which supply energy to the states of Haryana and Madhya Pradesh as it has signed long-term power purchase agreements. The units are located in Kobra district of Chhattisgarh.