Indian wind farm developer Indian Energy has arranged a £2 million loan facility to help it secure options over further wind projects in the country. The firm has plans to expand its operating portfolio from its current level of 41.3MW to 300MW by 2013.
The loan facility, with Utilico Emerging Markets, will bear interest at 10% per annum initially, rising to 12.5% from January next year, and will be repayable by the end of July 2011.
News of the loan facility came after Indian Energy announced an increase in revenues for the year to 31 March 2010. Turnover doubled to £2.2 million, although the firm’s loss before tax also increased to £3.6 million (2009: £1.4 million).
At the end of March Indian Energy had cash of £3.7 million, while its net debt was £7.8 million. The firm floated on London’s Alternative Investment Market in September last year, raising £9.8 million.
The company’s strategy is to acquire wind farms at their pre-construction phase. These projects have land already secured and key permits in place, so the majority of the development risk has been mitigated.
Indian Energy successfully commissioned its first wind farm, a 24.8MW development at Gadag in Karnataka, in February 2009. The firm’s second wind farm is a 50MW project at Theni in Tamil Nadu.
Theni’s first phase consists of 16.5MW of turbines, and this due for completion during the next few weeks. The second phase – consisting of 33MW of turbines – was originally scheduled for completion by the end of this year.
Indian Energy has contracted to sell the power from its existing projects to state electricity boards under long-term power purchase agreements for up to 20 years.
Indian Energy’s revenues are estimated to increase to £3.1 million during this financial year, while its pre-tax loss is forecast to come in lower at £1.2 million.
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