Rosa Power Supply Company, a subsidiary of Anil Ambani-led Reliance Power, has become a zero-debt company after it prepaid a loan of Rs 485 crore to Singapore-based lender Varde Partners. It has fully settled its outstanding debt by payment of Rs 1,318 crore to Varde ahead of the original schedule.
Earlier in September, the company had prepaid Rs 833 crore to Varde Partners. The loan was taken in 2022 as part of a refinancing arrangement for reducing its overall borrowing costs and managing liquidity.
This comes as at a time when Reliance Power is planning to strengthen its financial position through a Rs 1,525 crore preferential issue, approved by the board last month. Over Rs 600 crore of the amount came from Reliance Infrastructure and the rest from Authum Investment and Infrastructure and Sanatan Financial Advisory Services. The Issue will boost the company’s net worth from Rs 11,155 crore to over Rs 12,680 crore, claims the company in a press release.
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Rosa Power operates a 1,200 megawatt coal-based thermal power plant in Rosa village near Shahjahanpur, Uttar Pradesh.
Rosa Power achieved its zero-debt status shortly after its parent company’s debt-free status last month. Reliance Power settled its entire Rs 3,872 crore obligation as guarantor for Vidarbha Industries Power, resulting in the release and discharge of the corporate guarantee, undertakings and all obligations related to the outstanding debt.
It also announced that it has zero debt from banks and other financial institutions. As of June 2024, it had a consolidated net debt of Rs 17,812 crore.
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