New Delhi: Avaada Energy, the renewable energy subsidiary of Avaada Group, announced the successful closure of a significant refinancing transaction, securing about ₹4,471 crore (~$535 million) from the state-owned National Bank for Financing Infrastructure and Development (NaBFID). This refinancing covers four solar projects in Rajasthan, connected to the Interstate Transmission System (ISTS), with a combined capacity of approximately 1700 MWp.
Structured under a Restricted Group (RG) framework, this transaction has been rated ‘AA (Stable)’ by CareEdge Ratings. It is aimed at enhancing Avaada’s sustainable energy initiatives, ensuring stable, long-term cash flows and improved financial health, while significantly contributing to the reduction of the carbon footprint on a global scale.
The funds obtained from NaBFID were utilized to prepay existing loans, facilitating a successful exit for multiple lenders. This 20-year Rupee Term Loan (RTL) facility brings considerable commercial improvements over the earlier facilities that were prepaid.
Commenting on this financial milestone, Vineet Mittal, Chairman, Avaada Group, said, “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. 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.”
