Reliance Power, led by Anil Ambani, has made significant strides in settling its debts to several banks, including ICICI Bank, Axis Bank, and DBS Bank, according to sources familiar with the matter. Last week, Reliance Power successfully settled its debts with these three banks, marking a significant step towards its goal of becoming a debt-free company by the end of the fiscal year.
The settlement with ICICI Bank, Axis Bank, and DBS Bank saw Reliance Power repaying a portion of its debts, with the lenders recovering approximately 30-35% of their principal loans. The total debt owed to these three banks amounted to about Rs 400 crore.
Additionally, Reliance Infrastructure, the parent company of Reliance Power, is actively working towards settling its dues of Rs 2,100 crore to JC Flowers Asset Reconstruction Company. A standstill agreement was initially reached between Reliance Infrastructure and JC Flowers ARC, extending until March 20, 2024. However, this agreement has been recently extended to March 31, 2024, providing Reliance Infrastructure with additional time to arrange funds.
In a separate development, Reliance Power raised Rs 240 crore in equity from VFSI Holdings on March 13. It is speculated that the proceeds from this equity raise were utilized to settle the dues with the aforementioned banks. VFSI Holdings is a subsidiary of Varde Partners, a global asset manager.
Reliance Power and Reliance Infrastructure have been actively addressing their financial indebtedness. Reliance Power's total financial indebtedness stood at Rs 765 crore as of December 31, 2023, while Reliance Infrastructure's total financial indebtedness was reported to be Rs 4,233 crore for the same period.
In April 2023, Reliance Power also settled loans with two other lenders, JC Flowers ARC and Canara Bank, according to exchange disclosures. These efforts underscore Reliance Group's commitment to resolving its financial obligations and achieving a debt-free status.
