Cyril Amarchand Mangaldas (CAM) provided advice to a consortium of lenders headed by the Bank of Baroda regarding a loan of INR39.4 billion (USDxxx) to JSW Renewable Energy for the construction of an 825MW hybrid power facility in the state of Karnataka.
JSW Steel will employ the project, which consists of a 225 MW solar project and a 600 MW wind project, to cover its energy needs. Several assets, including real estate and stock shares, are used to secure the loan.
The legal team at CAM provided assistance to the group of lenders with the structuring, writing, and finalisation of the financing documents.
Additionally, they provided advice regarding the selling of a portion of the debt to the Bank of Maharashtra and the Central Bank of India. The project financing team, which also comprised Aiswarja Mohanty, Shrey Srivastava, and Shradha Sharma, was led by Ramanuj Kumar.
Rakesh Punamiya and Vaibhav Deshmukh were members of the legal team that defended JSW Renewable.
According to Anghsuman Roy, assistant manager at Cyril Amarchand Mangaldas, it is crucial in project finance transactions of a similar sort to make sure that clean security is provided over the assets and consents, if any, are recognised upfront.
According to him, “advice on the establishment of securities include requirements under many laws, including property law, stamp law, registration law, contract law, etc. Depending on the type of the security, requirements under both central and state laws must be taken into account.”
“Further, project-related risks are identified pursuant to the due diligence exercise and are appropriately addressed by way of documentation. In transactions where the security package includes a pledge over the shares of a borrower or any subsidiary of the borrower, it is critical to review their constitutional documents and shareholders’ agreement to identify any restriction on the sale and transfer of shares of the borrower or their subsidiaries.”