'ReNew Power' based in India's Gurgaon has raised a $1-billion project loan through external commercial borrowings (ECB), tying up with 12 international banks for the finance. The company said it is the single largest project funding in Indian renewable energy.
ReNew will use the funding for its upcoming hybrid round-the-cock (RTC) battery-enabled project. “The interest rate, after hedging, is expected to be lower than the company’s current average cost of debt on its balance sheet,” it said in a statement.
The company has signed a power purchase agreement with the Solar Energy Corporation of India (SECI) for the battery project at Rs 2.90 per unit with 3 per cent escalation annually for 15 years. It will set up wind and solar projects in the Indian states of Karnataka, Rajasthan, and Maharashtra under RTC. In April, Mitsui & Co ltd picked up 49 per cent stake in the RTC project.
“ReNew has shown continued ability to access financing at much lower rates than several years ago, despite the current volatility in the currency markets and a rising interest rate environment,” said Sumant Sinha, founder, chairman and CEO of ReNew.
ReNew, which is promoted by Goldman Sachs, was listed through the SPAC mode at NASDAQ last year, becoming the first Indian renewable company to do so. The company has a total renewable energy portfolio of 12.8 GW.