Avaada Energy has successfully completed a significant refinancing deal, securing Rs 4,471 crore (approximately USD 535 million) from the National Bank for Financing Infrastructure and Development (NaBFID) for its solar energy projects in Rajasthan. This deal, one of the largest of its kind in India’s renewable energy sector, will allow Avaada Energy to repay existing debts to several creditors.
The refinanced amount, provided as a 20-year rupee term loan, offers more favorable commercial terms than the previous loans. This strategic financial move involves four solar projects connected to the inter-state transmission system, collectively boasting a capacity of 1,700 MWp. The refinancing arrangement has been structured under the Restricted Group (RG) framework and has received an ‘AA (Stable)’ rating from CareEdge Ratings.
Vineet Mittal, Chairman of Avaada Group, remarked on the milestone, emphasizing that the refinancing covers four of their largest operational assets in Rajasthan, which have been functional for about two years. He highlighted the significance of the transaction in the context of India’s renewable energy market, noting that it consolidates NaBFID as the sole lender moving forward.
Avaada Group, a prominent player in the renewable energy landscape, engages in various activities including the generation of renewable energy, manufacturing of solar PV, development of green fuels such as green ammonia and sustainable aviation fuel, and providing energy storage solutions. This refinancing enhances their capacity to expand these initiatives and continue contributing to sustainable energy development.
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