Inox Clean Energy raises Rs 3,400 crore NaBFID loan for debt refinancing

Inox Clean Energy Limited (ICEL) has secured a 20-year loan of Rs 3,400 crore from the National Bank for Financing Infrastructure and Development (NaBFID). The funds are designated to refinance existing debt associated with several operational renewable energy projects acquired from Macquarie Group’s Vibrant Energy platform.

The long-term debt facility is anticipated to carry an interest rate between 8% and 8.5%. It will refinance obligations linked to seven specific renewable energy projects, which include a combination of solar, wind, and hybrid power assets.

This refinancing is being executed under a restricted group (RG) framework. This structure involves identifying a select group of subsidiaries, in this case, seven of Vibrant Energy’s 13 special purpose vehicles (SPVs), to collectively adhere to loan covenants and manage repayment. The chosen SPVs hold operational projects with long-term power purchase agreements secured with corporate clients such as Amazon, SIFY, and Ultratech.

Under the RG arrangement, the cash flows generated by these specific SPVs will be ring-fenced, dedicated primarily to servicing the new debt and providing defined repayment security to NaBFID. This transaction follows the December acquisition of Vibrant Energy from Macquarie Asset Management by ICEL’s parent, the INOXGFL Group, for an equity value of $200 million. Vibrant Energy operates approximately 800 MW of renewable capacity and has a development pipeline of 3 GW, focusing on open-access power for corporate customers.