Blupine Energy Secures ₹5,400 Crore Long-Term Loan From Axis Bank To Strengthen Renewable Energy Portfolio

BluPine Energy, a renewable energy platform backed by London-based private equity firm Actis, has successfully secured a long-term loan of ₹5,400 crore, underwritten by Axis Bank. This financing demonstrates strong institutional confidence in India’s renewable energy sector and highlights BluPine Energy’s operational capabilities. The loan is designed with attractive long-term loans suitable for renewable energy projects, with an interest rate of around 7.70% and a maturity period of 16 to 20 years. It is secured against BluPine Energy’s portfolio of 17 renewable energy special purpose vehicles (SPVs), which include both solar and wind assets. These SPVs operate under long-term power purchase agreements, providing predictable cash flows that ensure reliable debt servicing.

BluPine Energy’s asset portfolio is substantial, with an operating capacity of 1,426 megawatt-peak and an additional 26 MW currently under construction. Key SPVs in its portfolio include Solarcraft Power India 3, Solarcraft Cleantech, and Solarcraft TN1. All 17 SPVs are ultimately held by Actis through BluPine Energy, offering clear ownership and governance structures. This ownership provides lenders with confidence in the stability and management of the renewable energy assets.

The funds from this loan will be primarily used to refinance existing borrowings that BluPine Energy had previously raised from a variety of lenders. By refinancing, the company aims to optimize its capital structure, reduce financing costs, and extend the debt maturity profile to align with the long-term nature of renewable energy investments. This approach reflects a strategic effort to strengthen financial sustainability while supporting ongoing operations and future growth plans.

Actis has shown significant commitment to India’s renewable energy market, with a dedicated investment strategy focused on developing approximately 4 gigawatts of renewable capacity through its Actis Energy-5 fund. The firm has committed $800 million to India for this purpose, according to a recent report by ICRA. The partnership between Actis and BluPine Energy underscores the growing interest of international investors in India’s clean energy sector, driven by supportive policies, attractive returns, and a stable regulatory environment.

This development also highlights the broader trend of financial institutions increasingly backing renewable energy projects in India. By providing long-term financing, banks like Axis Bank are playing a crucial role in supporting the transition to sustainable energy. BluPine Energy’s refinancing and expansion plans demonstrate how strategic investments, strong governance, and reliable financing can help accelerate India’s renewable energy growth, contributing to energy security, environmental sustainability, and economic development.