- ReNew Energy Global Plc to receive a loan of USD 1 billion from a group of 12 international lenders
ReNew Energy Global Plc, an Indian renewable power producer, has agreed to receive a loan of USD 1 billion from a group of 12 international lenders. The fund will be used for the company’s hybrid project to ensure a constant power supply.
The Indian company revealed that it had secured the largest External Commerical Borrowings (ECB) project finance loan in India’s renewable energy sector from a banking consortium led by Rabobank.
The transaction experienced an oversubscription of up to 1.4 times. Based on the announcement, after hedging, the interest rate will be lower than the company’s average cost of debt on its balance sheet.
ReNew will direct the loan towards financing the 1.3 GW battery-enabled renewables hybrid project. Mitsui & Co Ltd, a Japanese trading house, already acquired a 49% stake in the project some months back. The scheme calls for constructing three wind farms and one solar plant with up to 100 MWh of battery storage across Rajasthan, Karnataka and Maharashtra states.
The Solar Energy Corporation of India (SECI) has agreed to buy power from this project at an initial price of INR 2.90 (USD 0.037/EUR 0.036) per kWh. The rate will rise by 3% annually for 15 years before stabilising for the remaining decade of the contract.