Issue of Debentures, Prepayment of Term Loans

24 June 2020

OPG Power Ventures plc

("OPG", the "Group" or the "Company")

Private Placement of Non-Convertible Debentures

Prepayment of Term Loans

OPG Power Ventures PLC is pleased to announce that the Group's operating subsidiary, OPG Power Generation Pvt Limited ("OPG PG") has raised Rs2.0 billion (approx. £21.2 million) through a placing of 2,000 Secured Redeemable Non-Convertible Debentures ("NCDs").  The key terms of the NCDs are:

·    9.85 per cent interest rate, payable semi-annually

·    repayable after three years

·    face value of each NCD of Rs1,000,000

·    NCDs to be listed on the 'Wholesale Debt Market' segment of the Bombay Stock Exchange.

Proceeds of the funds raised through NCDs were utilised to finance principal repayments on the Group's existing term loans through to June 2022.

In June 2020, in addition to repayment of Rs2.0 billion (approx. £21.2 million) of term loans from the proceeds of the NCDs, the Company also made a further prepayment of Rs0.61 billion (approx. £6.5 million) funded from the Company's existing resources.

The issue of the NCDs will have a material positive impact upon the Group's cash flow during the current uncertain trading period, through a significant deferment of principal payments and the NCDs' interest coupon is lower by c.1 per cent in comparison with the existing term loans interest rate.

Following these transactions, the Company's long-term debt amounts to £44.6 million, comprised of £21.2 million of NCDs and £23.4 million of existing term loans, with scheduled repayments spread from June 2022 to June 2024. 

As previously announced COVID-19 and the lockdown has had a severe impact on overall industrial activity in India as a result of which electricity demand in the country has seen a significant reduction during the first three months of FY21. However, power generation is expected to increase gradually over the coming months following the lifting of the second COVID-19 lockdown. The Company has continued operations during the lockdown albeit with limited plant load factor.

Arvind Gupta, Executive Chairman of OPG, commented:

"The issue of £21.2 million (Rs2 billion) of non-convertible debentures has significantly improved OPG's liquidity position which will enable the Group to improve management of its cash flows during these uncertain times. Additionally, it will enable OPG to resume cash dividend payments to the Company's shareholders in the medium term. I am pleased to report that our long term, profitable and sustainable business model remains unchanged."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

For further information, please visit www.opgpower.com or contact:

-ends-