Mytrah Energy Regulatory News (MYT)

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Mytrah Energy Limited ("Mytrah Energy" or the "Company")

Operational Update

Highlights

- Conditional terms agreed to acquire 59.75 MW with expected completion in April 2013

- Total capacity fully installed and operational at the start of the 2013 wind season expected to be 370 MW versus the previously anticipated 334 MW

- Debt secured for 238.2 MW due for delivery in 2013

- Continued strong support from a diverse range of Indian senior debt providers including The State Bank of India

- Re-introduction of Generation Based Incentive announced by the Indian Government

- Change of financial year-end from March to December to reflect the Indian wind season

Conditional Acquisition:

Mytrah Energy has agreed conditional terms to acquire 59.75 MW of existing operational wind power assets in the Indian States of Tamil Nadu and Maharashtra. These assets, which have an average age of under 12 months, comprise turbines from Gamesa, ReGen and Enercon. The proposed acquisition is subject to receiving certain approvals, including a No Objection Certificate from their existing lenders, for the transfer of the senior debt for the assets to the Company, and the completion of ongoing due diligence. The Directors expect that the final acquisition terms will be in line with our existing internal IRR targets. Following completion of the proposed acquisition, expected to be during April 2013, the Company's total portfolio of operational assets is expected to be 370 MW.

The directors of Mytrah Energy ("Directors" or "Board") are very pleased with this proposed acquisition opportunity and believe it demonstrates the prominent position of the Company within the Indian renewables sector. The Board will update the market with further details in April following the completion of formal documentation.

Development Pipeline:

The proposed acquisition has enabled Mytrah Energy to better optimize the use of its development budget and cash resources, by allowing an increase in its total asset base to 370 MW from the previously expected 334 MW going into the 2013 wind season. The effect of the proposed acquisition will result in Mytrah Energy having more operational assets throughout the 2013 wind season than forecast in December 2012 whilst still anticipating a total of over 600 MW fully connected and operational assets in 2013.

Mytrah Energy has now repositioned the timing of some of its development pipeline and it has discontinued its interest in the 24 MW project at Gotne in Maharashtra. This has been done at no cost to the Company. The 31.25 MW project at Sautada in Maharashtra that formed part of the 270 MW, previously announced on the 17 December 2012 for delivery in 2013, will be moved into the Company's 2014 - 2015 development pipeline. The assets currently under development and due for completion in stages during 2013 (together the "2013 Projects") are as follows:-

Site State Turbine Size

(MW)

Burgula Andhra Pradesh Gamesa 37.4

Savalsang Karnataka Gamesa 100.3

Vagarai Tamil Nadu ReGen 100.5

Total 238.2

Senior Debt:

Further to the announcement on 17th December 2012 regarding the senior debt for the 2013 Projects, the Company is pleased to announce that it has signed sanction letters with The State Bank of India ("SBI") for the Burgula and Savalsang projects and with PTC India Financial Services ("PFS") for the Vagarai project. In relation to the 2013 Projects, SBI and PFS are the lead banks providing the majority of the senior debt, the balance of the senior financing will be spread across the Company's existing senior debt providers. The total senior debt for the 2013 Projects is Rs 1,100 Cr (US$ 203m) and will be drawn down during the course of 2013 as the assets are constructed and commissioned.

The addition of these banks, particularly SBI, to the Company's existing senior debt providers, which now number over 12 banks, is a significant step forward for Mytrah Energy. The Directors believe that this provides Mytrah Energy with significant and broad based support from the Indian Banking Sector for the Company's development pipeline totaling 1,500 MW by March 2015.

The 2013 projects will take the Company's total assets to over 600 MW during 2013 and the Directors believe this will make Mytrah Energy the largest wind independent power producer ("IPP") in India.

Generation Based Incentive:

In the Union Budget tabled on 28 February 2013, the Indian Government announced the reintroduction of the Generation Based Incentive ("GBI"). Previously GBI provided an additional benefit of Rs. 0.50 for every KwH produced, up to a cap of Rs. 6,200,000 (US $115,000) over the life of each MW. The details of the revised scheme are expected to be announced in the next few weeks. The Directors believe that the terms will be at least as advantageous to the Company as the previous GBI scheme.

Group Captive Sales:

The Company currently anticipates that the 100.5 MW project at Vagarai in Tamil Nadu will sell a majority of the electricity it generates under long term Group Captive arrangements with industrial customers ("Group Captive Schemes"). Group Captive Schemes enable Mytrah Energy to be able to sell electricity that it produces directly to the end consumers. This has the significant benefit of allowing Mytrah Energy to participate in increases in power prices over the life of the assets. Given the significant element of fixed costs in our production, any rise in the realised price for generated electricity results in an increase in the Company's operating margins. It is also anticipated that the majority of the output from the proposed acquisition will be contracted under a Group Captive Scheme.

Therefore, the Directors expect that by the end of 2013 over 20% of the Company's portfolio of assets will be under Group Captive Schemes, providing a significant upside to shareholders if, as the Directors expect, power prices continue to rise in India over the next 20 years.

Change of Financial Year End:

Following consultation with its advisers and major shareholders, Mytrah Energy is also announcing a change to its financial year-end from March to December. The wind season in India runs predominantly from March to September and with this in mind the current March year-end means that the Company's turnover, and therefore results, is very heavily weighted towards the first six months of the Company's financial year. By changing to a December year-end the wind season will be split between the Company's financial half years. This will result in both interim and year-end figures providing a better reflection of the business's ongoing progress to Mytrah Energy's shareholders.

Following this change, Mytrah Energy will produce audited accounts for the nine months to December 2012 and thereafter six month interims to June and twelve month full year results to December.

Ravi Kailas, Mytrah Energy's Chairman and Chief Executive Officer, commented:

"Following the release of our Interim Results on 17th December 2012 where we reported that Mytrah had become profitable in the short space of time since our incorporation in 2010, I am delighted to be able to continue to update our shareholders with further positive news. The expected completion of our first acquisition, and indeed one of the first sizable acquisitions within the Indian wind energy sector, I believe highlights Mytrah's growing position as the dominant IPP within our sector.

We now expect, subject to completion of the proposed acquisition, to enter the 2013 wind season with 370 MW of fully operational assets as opposed to the 334 MW originally anticipated last December. Our 2013 pipeline is expected to deliver a total portfolio of over 600 MW, which I believe would make us the largest wind IPP in India.

I am particularly pleased that we have added The State Bank of India and PTC India Financial Services to our syndicate of senior lenders providing a very strong base for our goal of developing a portfolio of 1,500 MW in 2015. In addition, adding Group Captive Schemes to our energy sales mix allows Mytrah to benefit from any anticipated rise in electricity prices in India and in turn provide enhanced returns to our shareholders.

I look forward to providing further updates to our shareholders on our continued progress throughout 2013"

For further information please visit www.mytrah.com or contact:

Mytrah Energy Limited

Ravi Kailas, Chairman and CEO +91 40 3376 0102 

Strand Hanson Limited

James Harris / Richard Tulloch / Angela Hallett +44 (0)20 7409 3494

Investec Bank plc

Chris Sim / Jeremy Ellis +44 (0)20 7597 5970

Mirabaud Securities LLP

Peter Krens / Rory Scott +44 (0)20 7878 3360

St Brides Media & Finance Limited

Elisabeth Cowell / Frank Buhagiar +44 (0)20 7236 1177