Compressed Bio Gas under SATAT Scheme - Business

Features

• Nature of Facility:
  • Term Loan, Working Capital
• Quantum of loan:
  • Need based
• Debt : Equity
  • Min. 70 : 30
• Loan to Value (LTV) :
  • 70
• Margin:
  • Term Loan: Min. 30% of Project Cost.
  • Project cost shall include all components including margin money for Working Capital as per Bank guidelines on financing Term Loan / Project loans.
  • Working Capital: Min. 25%
• Pricing:

  25 bps concession over and above the extant card rates.

• Primary Security:
  • Term Loan:
  • Exclusive charge on entire project assets including immovable assets, movable assets, cash flow, Commercial Agreement and Escrow accounts, DSRA/ISRA etc.
  • An Escrow account shall be maintained by the CBG Plant owner in which all sales proceeds received from the OMCs from sale of CBG and Bio-manure will be credited. Payment will be made as per usual waterfall mechanism. The proceeds in the Escrow account shall be appropriated first towards Bank’s term loan repayment.
  • Working Capital:
  • Hypothecation of Stocks & Receivables
• Collateral Security:
  • Pledge of shares: (In case of companies)
  • 51% of shares of the borrower to be pledged where Security Trustee is available. In other cases, as per Bank’s extant guidelines.
  • In rare cases where mortgageability of lease-hold land is not possible, equivalent amount of collateral to be obtained.
• Personal / Corporate Guarantee:
  • Personal Guarantee of all the Promoters
  • Corporate Guarantee of the Parent Company in case of SPV / Joint Ventures.
• Repayment Period:
  • Repayment tenor:
  • The overall door-to-door tenor (moratorium + repayment tenor) not to exceed tenor of offtake agreement, which is 15 years and may be extended on mutual consent. For Renewable Energy projects, overall door-to-door tenor permissible is upto 15 years.
• Moratorium:
  • Construction period / Achievement of COD: 12 – 18 months
  • Moratorium after COD: 1 year
  • Interest to be serviced during moratorium.