Avaada Energy Secures INR 1,190 Crore Financing for 400 MW Solar Project in Gujarat

Avaada Energy, the renewable energy arm of the Avaada Group, has announced the securing of a green financing deal worth approximately INR 1,190 crore (around USD 143 million) from the State Bank of India (SBI), India’s largest public sector lender. This financing will facilitate the development of a 400 MWp solar photovoltaic power project in Gujarat’s Surendra Nagar district.

The solar project aligns with Avaada’s strategy to expand its renewable energy portfolio. The power generated from the project will be procured by Gujarat Urja Vikas Nigam Limited (GUVNL), the state’s apex electricity body.

This financing marks a milestone for Avaada, representing its first greenfield project development under an existing Special Purpose Vehicle (SPV) with an operational project. The structure enables Avaada to optimize its capital and ownership structure, demonstrating the company’s strategic approach to managing and expanding its renewable assets.

The financing, provided as a 20-year project loan facility, was sanctioned and disbursed at competitive terms, highlighting Avaada’s robust project financing capabilities.

Vineet Mittal, Chairman of Avaada Group, expressed delight in strengthening the relationship with SBI through this agreement. He emphasized the partnership’s reflection of Avaada’s strategic vision to build a diverse and high-quality energy portfolio. The deal also underscores the trust and commitment of leading financial institutions in supporting renewable energy projects with stable, long-term cash flows.

This financing showcases both Avaada’s and SBI’s commitment to fostering sustainable energy solutions, marking a significant step in India’s renewable energy sector.