ACME Solar Holdings Obtains ₹2,491 Crore Refinancing Facility

Key Takeaways

ACME Solar Holdings has obtained a ₹2,491 crore refinancing facility from SBI and REC with an interest rate of 8.8% to lower debt costs for renewable projects.
The funds will refinance existing debt for 490 MW of operational renewable energy projects across Andhra Pradesh, Rajasthan, and Punjab.
This refinancing supports ACME’s strategy for capital efficiency and financial stability as it aims for significant capacity growth in the coming years.

Long-term Refinancing Secured

ACME Solar Holdings has announced it has secured a long-term refinancing facility amounting to ₹2,491 crore. This significant financial move aims to lower the cost of debt related to renewable energy projects. The refinancing has been agreed upon at a reduced weighted average interest rate of 8.8% from State Bank of India (SBI) and Rural Electrification Corporation (REC).

The funds are specifically intended to refinance existing debt facilities associated with ACME Solar’s operational projects totaling 490 MW across Andhra Pradesh, Rajasthan, and Punjab. This refinancing initiative will not only alleviate financial burdens but also enhance the credit profile of the projects, providing a boost to the credit ratings for the entities in Andhra Pradesh and Punjab under a co-obligor structure.

The operational track records of the projects include a duration of nine years for the 160 MW project in Andhra Pradesh, nine years for the 30 MW project in Punjab, and three years for the 300 MW project in Rajasthan. The successful refinancing aligns with ACME Solar’s overarching aim of credit upgrades and reducing interest costs for all operational projects in its portfolio.

CFO Purushottam Kejriwal highlighted that this refinancing move is part of a larger strategy to establish an efficient capital structure while continually lowering debt costs. He noted that the reduced cost of debt enhances the company’s financial standing, facilitating further capacity growth aligned with ACME’s strategic plans over the next three years.

ACME Solar is recognized as a leader in India’s renewable energy sector, currently boasting an operational capacity of 2,540 MW, with an ambitious target of achieving 6,970 MU capacity in the next three years. This refinancing is a significant step towards realizing that vision and reinforcing ACME’s commitment to clean energy transition in India.

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