- 1.4X oversubscription, highlighting ReNew’s strong financial profile
- Consortium of 12 international lenders, including seven first project lenders to ReNew
- The largest renewable energy project with a capacity of 1,300 MW; unique project with 24-hour power supply (RTC), battery-powered hybrid capability
- Largest project finance facility for a single Indian renewable energy project at highly competitive prices
GURUGRAM, India, August 17, 2022 /PRNewswire/ — ReNew Energy Global plc (“ReNew” or “the Company”) (NASDAQ: RNW) (NASDAQ: RNWWW), india leader in clean energy, today announced that it has partnered with 12 international lenders, led by Rabobank, for the largest External Commercial Borrowing (ECB) project finance loan in the energy sector renewables in the country, for a single project.
As ReNew rapidly buildss its total portfolio, 1 billion US dollars The loan has been immobilized via a special purpose vehicle and will be deployed for its 24-hour battery-operated (RTC) hybrid project. The interest rate, after hedging, should be lower than the Company’s current average cost of debt on its balance sheet. ReNew signed a PPA with the Solar Energy Corporation of India (SECI) for this project, which will see the installation of wind and solar farms in the states of Karnataka, Rajasthan and Maharashtra.
Speaking on the ECB loan, Sumant SinhaFounder, Chairman and CEO, ReNew, said: “This loan, the largest project financing india renewable energy sector – highlights interest from global lenders in ReNew as it helps spearhead india historic change in clean energy and shows its continued ability to access financing at much lower rates than several years ago, despite the current volatility in foreign exchange markets and a rising interest rate environment.
It also shows the financial community’s confidence in our growth plans, our innovation, our project execution capabilities and our sound monetary management. We will work harder to build on that much-appreciated trust.”
The RTC project will provide electricity day and night and will compete with base load from fossil energy providers, such as coal.
In April, Mitsui & Co., Ltd. (“Mitsui”, 8031.T-JP: Tokyo Stock Exchange), one of the world’s leading general trading and investment companies, has partnered with ReNew for this RTC project in which it has taken a 49 %.
The project will supply electricity to SECI at a rate of ₹2.90 per unit to start, which will increase by 3% per year for 15 years and then stabilize for the remaining 10 years of the 25-year PPA.
This ECB loan follows ReNew’s refinancing of its dollar-denominated bonds with domestic borrowing last month, becoming the first Indian renewable company to do so.
ReNew Power is one of the largest independent producers of renewable energy in India and globally. ReNew develops, builds, owns and operates large-scale wind and solar energy projects, as well as hydroelectric projects. ReNew has a total gross portfolio of approximately 12.8 GW of renewable energy projects across India. To learn more, visit https://renewpower.in/ and follow us on LinkedIn, Facebook, Twitter and instagram.
SOURCEReNew Energy Global plc