Krishnamurthy & Co (K Law) was lenders’ counsel to Tata Cleantech Capital and Tata Capital Financial Services when TP Luminaire, a subsidiary of Tata Projects, recently availed of a ₹1.1 billion (US$15 million) credit facility. TP Luminaire was advised by its in-house legal team.
K Law’s team comprised Pradeep Ratnam, a senior partner at the firm who has since left, and associate Swapnil Sant.
TP Luminaire is to use the facility while implementing light emitting diode (LED) projects, which it is doing on a public-private partnership basis in Noida and Nashik municipalities.
Describing the deal as “a classic municipal concession-based financing with assured annuities”, K Law said that its distinctive feature is “an incremental revenue share” between the concerned municipalities and the borrower, which depends on the energy savings after the installation of LED lights.
“As this upside was secured to the lenders, we spent a considerable amount of time on the terms on which such upside was to be determined,” K Law said.
While Tata Cleantech Capital is a joint venture between Tata Capital and International Finance Corporation, Tata Capital Financial Services is a subsidiary of Tata Capital.