Avaada Energy, the renewable energy arm of the Avaada Group, is pleased to announce the successful closure of one of the largest refinancing transactions in India’s renewable energy sector, securing ~USD 535 Million from the state-owned lender, the National Bank for Financing Infrastructure and Development (NaBFID).
This transaction, conducted under a Restricted Group (RG) structure, encompasses four ISTS-connected solar projects in Rajasthan with a combined capacity of ~1700 MWp. The structure has been rated ‘AA (Stable)’ by CareEdge Ratings.
The refinancing supports Avaada’s mission towards a sustainable future, ensuring stable, long-term cash flows and improved financial health. This contributes significantly to renewable energy generation and positions Avaada to effectively reduce the global carbon footprint.
The financing from NaBFID, a specialised development finance institution established by the Government of India, enabled the prepayment of existing loans and offered a successful exit to multiple lenders. The 20-year Rupee Term Loan (RTL) facility achieves significant commercial improvements over earlier prepaid facilities.
Commenting on this achievement, Mr. Vineet Mittal, Chairman of the Avaada Group, said, “We have achieved a major milestone by refinancing four of our largest operating assets in Rajasthan, which have been operational for approximately two years. This is one of the largest transactions in India’s renewable energy market, allowing us to pay off existing lenders and welcome NaBFID as the new single lender. This accomplishment underscores the keen interest of financial institutions in supporting renewable energy projects that offer stable, long-term cash flows. Securing a better interest rate for operational assets further strengthens our bottom line, delivering value to all stakeholders.”