Avaada Energy enters ₹4,471 Crore refinancing agreement with NaBFID

19 Apr 2024 , 11:14 AM

Avaada Energy said on Thursday that it has finalised a ₹4,471 Crore refinancing arrangement with the National Bank for Financing Infrastructure and Development (NaBFID) for its four solar projects in Rajasthan.

The funding from NaBFID will allow Avaada Energy to prepay existing loans with numerous lenders. The arrangement, sanctioned and issued as a 20-year rupee term loan, provides considerable commercial benefits over previous prepayment programmes, according to a business release.

"Avaada Energy is delighted to announce the completion of one of the most significant refinancing deals within India's renewable energy domain. This transaction has secured approximately ₹4,471 Crore (USD 535 million) from NaBFID, a state-owned financial institution," the announcement conveyed.

This refinancing deal, carried out under the Restricted Group (RG) structure, includes four inter-state transmission system-connected solar projects with a total capacity of 1,700 MWp. CareEdge Ratings assessed the structure as 'AA (Stable)', according to the report.

Vineet Mittal, Chairman of Avaada Group, remarked, "We've reached a significant achievement by refinancing four of our primary operational assets located in Rajasthan. These assets have been generating power for around two years. This transaction ranks among the largest ever in India's renewable energy sector, enabling us to settle debts with previous lenders and welcome NaBFID as our new sole lender."

Avaada Group specialises in renewable energy generation, solar PV manufacturing, the development of green fuels such as green ammonia, green methanol, and sustainable aviation fuel, as well as energy storage solutions.

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