Sikkim State Power Development Corporation (SPDCL) has received a US$15.3M bank loan to help finance four Indian hydroelectric projects totalling 16MW.

A consortium of three banks lead by United Bank of India has issued the long-term loan to SPDCL, which is planning to eventually build 11 small hydro projects in Sikkim, the Himalayan Mountain state of India, with a combined capacity of 25MW.

SBI Capital Markets was sole advisor and arranger to the government of Sikkim in a deal that is reportedly the first of its kind in the state.

The transaction is intended to increase development of the power sector in India’s northeastern region.