Sterlite Grid Limited has successfully refinanced East-North Interconnection Company Limited's (ENICL) project loan within three months of the project becoming fully operational in November 2014. The new financing arranged by Axis Bank consists of a long term loan of Rs. 925 crore, with significantly favorable terms as compared to the earlier debt.

This refinancing is in line with Sterlite's stated objectives of recycling capital for increasing returns on investment. With this transaction, Sterlite has not only achieved reduction of 175 basis points in the interest cost on per annum basis, but also released more than Rs. 150 crore after repaying its outstanding debt obligations to the existing financial institutions. It is the first inter-state private power transmission asset to get refinanced with such favorable terms, reflecting keen interest of financial institutions in funding power transmission projects with stable long-term cash flows. The East-North Interconnection will generate predictable and stable cash flows for more than two decades.

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