ACME Solar Completes INR 2,147 Crore Refinancing, Cuts Borrowing Costs By 150 Basis Points

ACME Solar Holdings Limited has successfully completed a domestic refinancing transaction worth Rs 2,147 crore, strengthening its financial position and improving the long-term capital structure of its operational solar portfolio.

The refinancing enables ACME Solar to fully redeem its existing Non-Convertible Debentures (NCDs) and the underlying offshore dollar bonds issued under its Restricted Group (RG) structure. The transaction covers 12 operational Special Purpose Vehicles (SPVs) with a combined solar power capacity of 450 MW.

With the completion of this refinancing, ACME Solar’s total financing raised during the current financial year has reached Rs 8,198 crore, highlighting continued access to institutional funding for its renewable energy portfolio.

The RG structure includes operational solar projects, with 56% of the cumulative capacity contracted with central utilities such as the Solar Energy Corporation of India (SECI) and NTPC. The remaining capacity is contracted with various state-level power off-takers.

Reflecting the strong operating performance and financial profile of the assets, CARE Ratings has provisionally assigned an AA- credit rating to the structure.

The long-term refinancing has been secured from the National Bank for Financing Infrastructure and Development (NaBFID). According to the company, the refinancing is expected to reduce borrowing costs by around 150 basis points across the issuing SPVs. The lower interest burden is expected to improve project-level cash flows and provide greater financial flexibility over the long term.

ACME Solar has an overall renewable energy portfolio of 8,070 MW across solar, wind, energy storage and hybrid projects. Its portfolio includes 2,990 MW of contracted capacity and 3.62 GWh of battery energy storage capacity, while another 5,080 MW is currently under construction.

The company continues to focus on developing and operating renewable energy projects through its integrated engineering, procurement, construction and operations capabilities, supporting India’s expanding clean energy infrastructure.