SBI-led consortium puts Coastal Energen on the block

July 2, 2018

Coastal Energen has been put up for sale by a consortium of lenders led by the State Bank of India (SBI). The company owns a 1,200 MW coal-based power plant in Tamil Nadu and had obtained credit facilities from lenders for the same. As of December 30, 2016, the company had a debt of over Rs 60 billion and went through strategic debt restructuring earlier for resolution. SBI Capital Markets has been appointed by SBI on behalf of the consortium to identify an investor in accordance with the new Reserve Bank of India norms for the acquisition of a 51 per cent share in the company, which is currently held by the lenders, subsequent to the conversion of debt into equity. SBI is the key lender with a share of 18.54 per cent in the company. The other lenders include PNB, the Central Bank of India, Indian Bank and Indian Overseas Bank.