Cyril Amarchand Mangaldas (CAM) provided guidance to a consortium of lenders that was headed by the Bank of Baroda about a loan of INR39.4 billion (USDxxx) to JSW Renewable Energy for the construction of an 825MW hybrid power plant in the state of Karnataka.
JSW Steel will be able to fulfil its energy requirements with the help of the project, which will consist of a solar project with 225 MW and a wind project with 600 MW. The loan is backed by a variety of assets, including stock shares and real estate, amongst others.
The group of lenders received assistance from the legal team at CAM with the process of structuring, preparing, and finalising the financing contracts.
In addition to this, they provided counsel about the selling of a part of the debt to the Central Bank of India as well as the Bank of Maharashtra. Aiswarja Mohanty, Shrey Srivastava, Shradha Sharma, Tanvi Ramdas, and Umang Pathak were members of the team that worked on the project’s funding. Ramanuj Kumar served as the team’s leader.
Rakesh Punamiya and Vaibhav Deshmukh were members of JSW Renewable’s legal team, which represented the company.
According to Anghsuman Roy, an assistant manager at Cyril Amarchand Mangaldas, speaking to India Business Law Journal, in project finance transactions of a similar nature, it is essential to make certain that clean security is created over the assets and that consents, if any, are identified up front.
“Advice on security creation subsumes requirements under different laws such as property law, stamp law, registration law, contract law, etc.,” he said. “Depending on the nature of the security, requirements under both central and state laws need to be factored in.” “Advice on security creation subsumes requirements under different laws such as property law, stamp law, registration law, contract law, etc.”
Furthermore, project-related risks are identified as a result of the due diligence effort, and suitable responses to these risks are documented. When a transaction involves a security package that includes a pledge over the shares of a borrower or any subsidiary of the borrower, it is absolutely necessary to review the borrower’s constitutional documents and shareholders agreement in order to determine whether or not there is a restriction on the sale and transfer of shares held by the borrower or their subsidiaries.