The Firm advised and acted for Power Finance Corporation Limited (Lender) in connection with financial assistance sanctioned to the 4 (four) SPVs of Shapoorji Pallonji and Company Private Limited (collectively the “Borrowers”), aggregating up to USD 138 million approximately (INR 1156.02 Crore) for the purpose of partly financing the project cost for setting up sea water desalination plants at 4 (four) different locations in the state of Gujarat (collectively the “Project”).
The Firm assisted on structuring of the transaction, negotiating, finalization and execution of the financing documents, conducting limited due diligence of the Borrowers and the Project, vetting of legal pre-commitment conditions and pre-disbursement conditions and issuance of a closing legal opinion on the due execution/capacity, stamping and enforceability of financing and security documents. The Borrowers are group companies of Shapoorji Pallonji and Company Private Limited, which are in the process of setting up sea water desalination plants at 4 (four) different locations in the state of Gujarat, in collaboration with the Government of Gujarat under concession arrangement. The Borrowers are establishing advanced desalination technologies to convert sea water into fresh water for industrial use. Once completed, the Project will have a total capacity of 270 MLD. The transaction was first of its kind for the Lender also and has added a new component in the financing portfolio of the Lender. The team has coordinated and negotiated with the Lender, the concessioning authority of Gujarat and the Borrower teams for finalization of the financing documentation.