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Sept. 20 (Bloomberg) -- GVK Power & Infrastructure Ltd., a builder of airports and utilities controlled by Indian billionaire GV Krishna Reddy, expects to hire banks to help organize a $1 billion loan as early as next week, according to a person with direct knowledge of the matter.
The company agreed to pay $1.26 billion earlier this month to acquire coal projects from Australia’s Hancock Prospecting Pty. and will invest at least $6.5 billion over the next eight years to develop the mines.
GVK said on Sept. 16 it agreed to pay $500 million now followed by $200 million one year from the deal closing, and $560 million more on the ‘financial close’ of the project, expected to be in 2012. Funding for the acquisition is “tied up with banks,” GVK said in a statement that day.
An initial bank group for the loan is expected to be announced before the end of the month, the person said today.
GVK chief financial officer A. Issac George was traveling and couldn’t immediately be reached for comment.
--With assistance from Karthikeyan Sundaram in New Delhi. Editor:
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