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 as collateral to secure the loan.
The legal team at CAM assisted the group of lenders with the structuring, writing, and finalization 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 funding group was led by Ramanuj Kumar and comprised Aiswarja Mohanty, Shrey Srivastava, Shradha Sharma, Tanvi Ramdas, and Umang Pathak.
Rakesh Punamiya and Vaibhav Deshmukh were members of the legal team that defended JSW Renewable.
According to Anghsuman Roy, the 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 recognized upfront.
According to him, “advice on the establishment of securities includes 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.”
“Furthermore, hazards associated with the project are found as a result of the due diligence process and are effectively addressed by way of documentation. Reviewing the shareholders’ agreement and the borrower’s charter to find any restrictions on the sale and transfer of shares of the borrower or any of its subsidiaries is crucial in transactions where a pledge over those shares is included in the security package.