ACME Solar Holdings, a renewable energy platform of the diversified ACME Group, has secured INR 2,491 crore long-term project finance facility to refinance its existing debt and reduce the cost of financing of its 490 MW operational renewable energy projects in Andhra Pradesh (160 MW), Rajasthan (300 MW) and Punjab (30 MW).
The refinancing facility for project life of 18- 20 years has been secured from SBI and REC at reduced weighted average interest rate of 8.8%.
The projects benefit from power purchase contracts with state counterparties.
“This [refinancing facility] has helped to improve the credit profile and obtain higher credit rating for Andhra Pradesh and Punjab entities under co-obligor structure. This aligns well with group’s goal of credit upgrade and bringing overall interest cost down for all operational projects,” stated Acme Solar.
Purushottam Kejriwal, chief financial officer of ACME Solar Holdings, said, “The refinancing initiative aligns with our strategy to create an efficient capital structure while consistently reducing cost of debt. We have been able to improve our projects’ credit ratings by demonstrating our commitment to financial discipline and stability. The reduced cost of debt enables us to further strengthen our financial position as we pursue capacity growth over the next three years.”
ACME Solar Holdings has an operational capacity of 2,540 MW and targets to achieve 6,970 MW within the next three years.
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