Reliance Power to Receive Loans from Major Chinese Banks

Anil Ambani's Reliance Power on 16 December 2010 declared that the company’s 3960 mw Sasan Ultra Mega Power Project received the final commitment of term loans of Rs 5000 crore (over $1 billion) from Bank of China (BOC), China Development Bank (CDB) and the Export Import Bank of China (CEXIM) along with Standard Chartered Bank. This till date is the largest financing provided by Chinese banks to an Indian project across various sectors. The Chinese financing will help to support import of power equipment for the Sasan project from Shanghai Electric. The financing would be provided on a non-recourse basis with loans maturing over 13 years.

The major Chinese banks (Bank of China, China Development Bank, the Export Import Bank of China, Industrial and Commercial Bank of China) had in October 2010 confirmed support to various group projects and had signed MoUs with R-Power.