Reliance Power Ltd. (RPL) and its subsidiary signed an initial memorandum of understanding (MOU) with Varde Partners to borrow up to Rs. 1,200 crores in debt to pay off, discharge, or acquire and restructure some financial obligations that RPL had previously taken out.

Reliance Power and its subsidiary signed a Memorandum of Understanding (MoU) with Varde Partners in New Delhi to obtain financing worth up to Rs. 1,200 crores (around USD 150 million).

Reliance Power Ltd. reported in a regulatory filing that “RPL and its subsidiary entered into an indicative Memorandum of Understanding (MoU) with Varde Partners for availing debt of up to Rs. 1,200 crores (US$ 150 million) for settlement and discharge and/or purchase and restructuring of certain financial debt availed by RPL.”

According to the filing, “the drawing of the debt will be subject to finalization and execution of binding documents and all necessary approvals, including regulatory approvals as per applicable rules, laws, and regulations.”

The formal documents related to the planned financing will be executed after the proposed financing terms are finalized and the stock exchanges are updated, it was stated.

Leading international alternative investment company Varde Partners focuses on credit and assets with a credit component. According to its website, Varde presently oversees assets worth over USD 13 billion with teams in North America, Europe, and the Asia Pacific region.

One of India’s top coal resource and power generation companies is Reliance Power Limited, a unit of the Reliance Group. With an operating portfolio of 5,945 megawatts, it has one of the largest private sector portfolios of power projects based on coal, gas, hydro, and renewable energy.