Avaada Energy Secures Rs 597 Crore Refinancing For Solar Projects In Karnataka, Maharashtra
The Avaada Energy refinancing was secured from NIIF Infrastructure Finance Ltd., an infrastructure debt fund.
Avaada Energy Ltd. announced on Tuesday that it has successfully completed refinancing of approximately Rs 597 crore, or around $71.1 million, for its solar projects in Karnataka and Maharashtra. The renewable energy independent power producer, part of the Avaada Group, confirmed the successful closure of this refinancing specifically for its Commercial & Industrial (C&I) solar projects in the two states.
The refinancing was secured from NIIF Infrastructure Finance Ltd., an infrastrvucture debt fund focused on refinancing high-quality operational infrastructure projects, according to the statement.
These projects currently supply electricity to various leading corporates in the country, including Bharti Airtel Ltd., Motherson Ltd., Bharat Forge Ltd., STT, Nxtra Data Ltd., Lumax Industries Ltd. etc., supporting them in their energy transition goals.
The refinancing from NIIF IFL significantly improved commercial terms to facilitate prepayment of existing loan facilities along with delivering reduction in finance costs while releasing capital for future deployment.
"The improved financing terms enhance the financial position of these projects and create value for all stakeholders," said Vineet Mittal, Chairman of Avaada Group.
In April, Avaada Energy said it closed a refinancing deal of Rs 4,471 crore with National Bank for Financing Infrastructure and Development for its four solar projects in Rajasthan. The financing from NaBFID will enable Avaada Energy to prepay existing loans to multiple lenders.
Before that, Avaada Energy secured Rs 315 crore financing from Aseem Infrastructure Finance Ltd. for a captive solar project in Karnataka. Aseem Infrastructure Finance is an IFC (Infrastructure Finance Company) established with the aim of playing a transformative role in the growth of Indian infrastructure debt financing, according to a company statement.
Avaada Group has planned an ambitious Rs 2.5 lakh-crore investments in various green energy businesses, with a vision to become a sand-to-molecule company by 2031, Founder and Chairman Vineet Mittal said.
The renewable energy focused group is setting up 11GW of renewable generation capacity by 2026 and 30 GW by 2030. The company has an operational capacity of 5 GW and another 23 GW is under various stages of construction.
(With inputs from PTI)
