Tata Power to raise US$300 million through coal SPVs

India?s largest private power producer Tata Power announced on Wednesday that it would sell 14-15 percent stake of its coal Special Purpose Vehicles (SPVs) to Olympus Capital Holdings Asia (Olympus Capital) to raise US$300 million.

Tata Power holds 30 percent interest in the PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia coal mines in Indonesia through these SPVs.

These funds could also be utilized to secure further long term coal supplies by investing in coal mines or to reduce the outstanding debt in the SPVs, the Company said.

Tata Power acquired 30% stake in KPC and Arutmin in 2007 for $1,225 million from Bakrie family-controlled PT Bumi Resources Tbk.

Olympus Capital Holdings Asia is an independent middle market private equity firm established in 1997 with offices in Hong Kong, New Delhi, New York, Seoul, Shanghai and Tokyo. (alex)