India’s largest bank to divest a portion of its loan to Adani Power, worth Rs…, for purposes of acquisition…

State Bank of India (SBI), India’s largest bank, is in talks with other banks to downsize a part of the Rs 1800 crore loan it provided to Adani Power to acquire Lanco Amarkantak Power, a 600 MW thermal power company. The loan was given for 12 years and 3 months at an interest rate of 10.5% linked to SBI’s six-month MCLR. SBI is looking to downsize the loan by Rs 1200 crore. The Adani Group did not comment on the development. The acquisition of Lanco Amarkantak Power was made through the corporate insolvency process, with Adani Power investing Rs 4101 crore. The power company has two units of 300 MWs that supply energy to Haryana and Madhya Pradesh. The units are located in Chhattisgarh and have long-term power purchase agreements. The deal was reportedly the first of its kind, with Adani Power outbidding other players like Reliance Industries and Power Finance Corporation.