Cyril Amarchand Mangaldas provided counsel to a consortium of lenders led by Bank of Baroda on a loan of INR39.4 billion to JSW Renewable Energy for the construction of an 825 MW hybrid power project in Karnataka.
The hybrid project, which will include a 225 MW solar project and a 600 MW wind project, is aimed at fulfilling the energy needs of JSW Steel. The loan was secured through various assets, including real estate and equity shares.
CAM advise to Bank of Baroda
CAM’s legal team played a crucial role in assisting the group of lenders by providing support in structuring, drafting, and finalizing the financing documents.
Additionally, CAM also provided counsel on the transfer of a portion of the loan to the Central Bank of India and the Bank of Maharashtra. The project financing team was led by Ramanuj Kumar and comprised of Aiswarja Mohanty, Shrey Srivastava, Shradha Sharma, Tanvi Ramdas, and Umang Pathak.
JSW Renewable was represented by the legal team of Rakesh Punamiya and Vaibhav Deshmukh.
What Anghsuman Roy, assistant manager at CAM said?
Anghsuman Roy, an assistant manager at Cyril Amarchand Mangaldas, highlighted the importance of creating clear security over assets and identifying any necessary consents in project finance transactions of this nature in a statement to India Business Law Journal.
“In providing advice on security creation, it is important to consider the various legal requirements under different laws, such as property law, stamp law, registration law, contract law, and any necessary laws at both the central and state levels,” Roy stated.
“Due diligence is performed to identify project-related risks, which are then addressed through proper documentation. When the security package includes a pledge over the shares of a borrower or its subsidiary, it becomes crucial to thoroughly review their governing documents and shareholders’ agreement to check for any restrictions on the sale and transfer of shares,” he added.