Greenko’s ₹4,800 Crore Refinancing Signals Growing Confidence In India’s Renewable Energy Sector

Greenko Group has secured a long-term loan of ₹4,800 crore, a move that is being seen as an important signal for India’s renewable energy financing landscape. The 25-year loan has been arranged to refinance green bonds worth $940 million that were issued in 2021 and are due for repayment this year. By locking in this funding, Greenko avoids the pressure of returning to volatile capital markets and instead aligns its debt with the long operating life of its renewable assets.

The loan carries an interest rate of around 8 to 8.5 percent and is linked to 38 special purpose vehicles that together own about 1 GW of solar, wind, and hydro power capacity. These SPVs are structured under a Restricted Group framework, which allows the lender to ring-fence cash flows used for debt servicing. If one project faces lower generation or delays, cash flows from other projects within the group can support repayments, reducing overall risk for the lender.

The National Bank for Financing Infrastructure and Development has disbursed the loan, reflecting growing confidence among Indian institutions in renewable energy assets backed by long-term power purchase agreements. Most of Greenko’s projects have PPAs with state distribution companies and large industrial buyers, providing predictable revenue over many years.

The refinancing comes at a time when rating agency Fitch has downgraded Greenko’s foreign-currency rating to BB-, citing project delays and a heavy capital expenditure pipeline. However, the continued equity support from GIC, which holds a 58 percent stake in Greenko, has helped ease concerns around equity dilution, especially for large pumped-hydro storage projects.

For the wider renewable sector, this deal highlights a shift toward long-tenure, asset-aligned financing. As India moves toward its 2030 clean energy targets, such structures could help lower financing risks and support faster capacity growth across solar, wind, and storage projects.