Avaada Energy, the renewable energy arm of India-based Avaada Group, has announced the successful closure of INR 4,471 crore ($535 million) of refinancing from the state-owned lender, the National Bank for Financing Infrastructure and Development (NaBFID).

The firm said in a statement on Tuesday that this refinancing transaction, conducted under a restricted group (RG) structure, encompasses four ISTS-connected solar projects with a combined capacity of about 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.

“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,” said Vineet Mittal, Chairman of Avaada Group.

“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,” he added.

Avaada Group is involved in renewable energy generation, solar photovoltaic (PV) manufacturing, development of green fuels including green ammonia, green methanol and sustainable aviation fuel, and providing energy storage solutions.

Avaada Energy, its renewable power generation arm, aims to achieve 11 GWp capacity by 2026.

The firm has attracted significant international investments, including a fund commitment of $1.3 billion in 2023, with a $1 billion commitment from Brookfield’s Energy Transition Fund, and $300 million from GPSC, PTT Group of Thailand.

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