Avaada Energy Successfully Closes INR 4,471 Cr Refinancing for its Four Solar Projects in Rajasthan
April 30 2024 - 8:15AM
Avaada Energy, the renewable energy arm of Avaada Group, is pleased
to announce the successful closure of one of the largest
refinancing transactions in India’s renewable energy sector,
securing about INR 4,471 crore (~USD 535 Million) from the
state-owned lender, the National Bank for Financing Infrastructure
and Development (NaBFID).
This refinancing transaction, conducted under a
Restricted Group (RG) structure, encompasses four ISTS-connected
solar projects with a combined capacity of ~1700 MWp in the state
of Rajasthan. The structure has been rated as ‘AA (Stable)’ by
CareEdge Ratings.
This refinancing supports Avaada’s mission
towards a sustainable future, ensuring stable, long-term cash flows
and improved financial health. It significantly contributes to
renewable energy generation and positions Avaada to reduce the
carbon footprint more effectively on a global scale.
The financing from NaBFID, a specialized
development finance institution established by the Government of
India, enabled the prepayment of existing loans and offered a
successful exit to multiple lenders. The facility, sanctioned and
disbursed as a 20-year Rupee Term Loan (RTL) facility, achieves
significant commercial improvements over the earlier facilities
prepaid.
Commenting on this remarkable achievement,
Mr. Vineet Mittal, Chairman of Avaada Group, said,
“We have achieved a major milestone by refinancing four of our
largest operating assets in Rajasthan. These assets have been
operational for approximately two years. This is one of the largest
transactions ever conducted in India’s renewable energy market and
allows us to pay off existing lenders and welcome NaBFID as the new
single lender. This accomplishment underscores the keen interest of
financial institutions in supporting renewable energy projects that
offer stable, long-term cash flows. Securing a better interest rate
for operational assets further strengthens our bottom line while
delivering value to all stakeholders.”
About Avaada GroupAvaada Group
is at the forefront of the energy transition, involved in Renewable
Energy Generation, Solar PV Manufacturing, development of Green
Fuels including Green Ammonia, Green Methanol and Sustainable
Aviation Fuel, and providing Energy Storage Solutions. Under Mr.
Vineet Mittal’s leadership, the group has become a significant
global energy player. Avaada Energy, its renewable power generation
arm, aims to achieve 11 GWp capacity by 2026. Avaada’s strong
execution capabilities and proven track record have attracted
significant international investments, including a fund commitment
of US $1.3 billion in 2023, with a US $1 billion commitment from
Brookfield’s Energy Transition Fund, and $300 million from GPSC,
PTT Group of Thailand.
Website: www.avaada.com Twitter: @avaadagroup
Facebook: @AvaadaGroup LinkedIn: @AvaadaGroup
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