12 Jun 2009 11:16
| Immediate Release | 12 June 2009 |
KSK Power Ventur plc
("KSK" or "the Company")
New Corporate Debt facility for Indian Subsidiary
KSK Power Ventur plc (AIM: KSK.L) ("KSKPV" or "The Company" ), the power project company listed on the AIM market of the London Stock Exchange, with interests in multiple power plants across India notifies the following:
The Company's Indian listed subsidiary, KSK Energy Ventures limited ("KSKEV"), in line with its ongoing growth plan, is pursuing various power generation opportunities across India. The Company has been informed by KSKEV, that it has been granted a corporate debt facility from a respected financial institution in India, repayable over 5 years, to meet development expenditure for its power generating assets.
This facility to KSKEV requires primary security of underlying assets and collateral of the promoter's shareholding in KSKEV. Pursuant to a request made by KSKEV to the Company, KSK Energy Limited, Mauritius, a subsidiary of KSK Power Ventur plc and the promoter entity of KSKEV, has consented to pledge 52 million shares in KSKEV, as collateral for the facility being made available to KSKEV. In addition to quarterly adjustments under the agreement, the shares under pledge are expected to be released in their entirety upon repayment of facility by KSK Energy Ventures Limited.
Commenting on the above development, Mr.K A Sastry, Executive Director, KSK Power Ventur plc said:
"We are pleased to support our subsidiary, KSK Energy Ventures Limited, in obtaining this facility from such a well known institution. We believe that this not only assists the growth prospects of KSKEV and its underlying power projects but also reinforces the promoter commitment to the Indian subsidiary and the growth of the KSK group as a whole".
For further information please contact:
KSK Power Ventur plc +91 40 2355 9922
K A Sastry
Arden Partners plc +44 (0) 020 7398 1632
Richard Day / Adrian Trimmings
Buchanan Communications +44 (0) 20 7466 5000
Mark Edwards