ACME Solar Secures INR 4725 Crore Financing for Renewable Projects
Filing Summary
ACME Solar Holdings Ltd has secured INR 4725 crore in financing from Indian financial institutions to support renewable energy projects and optimize its capital structure. The financing includes INR 2716 crore from Power Finance Corporation Ltd for a 300 MW project and INR 800 crore from National Bank for Financing Infrastructure Development for a 150 MW project. Additionally, INR 1209 crore was secured from Yes Bank for refinancing a 300 MW project. This funding aligns with ACME Solar’s strategy to maintain a diversified borrowing mix and reduce financing costs.
ACME Solar Holdings Ltd has announced the successful securing of INR 4725 crore in financing through its subsidiaries. The funds have been obtained from leading Indian financial institutions to support the construction of renewable energy projects and to optimize the company’s capital structure by reducing financing costs. The financing package includes both new project financing and refinancing of existing projects.
The financial arrangement comprises INR 2716 crore from Power Finance Corporation Ltd for the 300 MW ACME Sigma FDRE project, which includes four hours of battery storage. Additionally, ACME Solar has secured INR 800 crore from the National Bank for Financing Infrastructure Development for the 150 MW ACME Platinum Solar + ESS project, which features two hours of battery storage with 50% availability. Both projects are in advanced stages of construction and have connectivity in place. Furthermore, INR 1209 crore has been secured from Yes Bank for refinancing the operational 300 MW ACME Sikar Solar project, enabling a reduction in the cost of debt by 170 basis points initially and eventually by 195 basis points.
The scope of the financing includes both greenfield projects and refinancing of operational projects. The new greenfield financings are aimed at expanding ACME Solar’s renewable energy capacity, while the refinancing efforts are focused on reducing the cost of existing debt. The refinancing from Yes Bank marks the first long-term refinancing arrangement for ACME Solar with this institution. The company has also expanded its non-fund based limits with various banks, including ICICI Bank, Standard Chartered Bank, First Abu Dhabi Bank, and EXIM Bank, to further reduce the cost of debt through trade finance during the construction stage of projects.
In the current financial year, ACME Solar has secured approximately INR 10590 crore in greenfield financing, leading to an overall debt tie-up of more than 90% of power purchase agreements signed under construction projects. The company has also refinanced debt amounting to approximately INR 3380 crore, achieving a rate reduction of approximately 135 basis points on refinanced debt and an additional rate reduction of approximately 60 basis points on INR 4035 crore debt for other projects. This initiative is in line with the company’s long-term funding strategy to maintain a well-diversified and strategic mix of fixed and floating rate borrowings.
The financing arrangements are expected to be implemented over a tenor ranging from 18 to 20 years, with the involved entities including Power Finance Corporation Ltd, National Bank for Financing Infrastructure Development, and Yes Bank. The projects are currently in advanced stages of construction, with connectivity already in place.
ACME Solar Holdings Ltd is a leading integrated renewable energy player with a diversified portfolio spanning solar, wind, storage, FDRE, and hybrid solutions. The company’s total renewable portfolio stands at 7520 MW, with an operational capacity of 2942 MW and an under-construction capacity of 4578 MW, including approximately 15 GWh of battery energy storage systems. ACME Solar focuses on end-to-end development and operation and maintenance of plants, ensuring efficient project delivery and strong operating performance.