ACME Solar secures Rs 24.91 billion refinancing for 490 MW projects

ACME Solar Holdings has secured a long-term refinancing facility of Rs 24.91 billion for its operational renewable energy portfolio totaling 490 MW across Andhra Pradesh, Rajasthan, and Punjab.

The refinancing has been arranged through the State Bank of India and REC Limited, with a tenure ranging from 18 to 20 years. It will be used to restructure existing debt and lower the financing cost to a weighted average interest rate of 8.8 per cent.

The projects covered include a 160 MW plant in Andhra Pradesh and a 30 MW plant in Punjab, both with nearly nine years of operational track record, and a 300 MW project in Rajasthan that has been operational for three years.

According to Purushottam Kejriwal, Chief Financial Officer at ACME Solar Holdings, the refinancing supports the company’s strategy to optimise its capital structure and lower the cost of debt. He stated that improved credit ratings and financial discipline have enabled the company to strengthen its financial position as it plans further capacity expansion over the next three years.