ACME Solar has completed a Rs 2,147 crore refinancing exercise, redeeming non-convertible debentures issued by 12 operational special purpose vehicles with a cumulative capacity of 450 MW.
The NCDs had been issued in August 2021 under a restricted group structure. The underlying offshore dollar bonds under the orphan structure have also been fully redeemed. With this transaction, ACME Solar’s total financing raised so far in the current financial year stands at Rs 8,198 crore.
The restricted group comprises 12 operational solar assets, with 56 per cent of the overall capacity tied up with central utilities including SECI and NTPC, while the remaining capacity is contracted with state offtakers.
Refinancing Lowers Borrowing Cost
The long-term refinancing has been availed from the National Bank for Financing Infrastructure and Development, or NaBFID. According to the company, the transaction has reduced borrowing costs by about 150 basis points across the issuing SPVs.
ACME Solar said the lower financing cost is expected to improve project cash flows and strengthen the long-term capital structure of the assets. The company said, “This long-term refinancing has reduced the borrowing cost by approximately 150 basis points across these issuing SPVs, resulting in stronger project cash flows and an enhanced long-term capital structure.”
ACME Solar currently has a diversified renewable energy portfolio spanning solar, wind, storage, FDRE and hybrid projects. Its operational contracted capacity stands at 2,990 MW, while 5,080 MW of contracted capacity is under construction.