ACME Solar Secures ₹2,491 Cr Refinancing for 490 MW RE Projects

ACME Solar Secures ₹2,491 Cr Refinancing for 490 MW RE Projects

ACME Solar Holdings, a unit of the diversified ACME Group, has secured a Rs 2,491 crore long-term project finance facility for 18-20 years. The refinancing will help the company restructure its existing debt and lower financing costs for its 490 MW operational renewable energy projects across Andhra Pradesh, Rajasthan, and Punjab.

The refinancing, secured from the State Bank of India (SBI) and REC Ltd, lowers the weighted average interest rate to 8.8%. This has improved the company’s credit profile and resulted in higher credit ratings for its Andhra Pradesh and Punjab projects under a co-obligor structure.

Enhanced Project Credit Ratings 

“This refinancing aligns with our strategy to create an efficient capital structure while consistently reducing our cost of debt,” said Purushottam Kejriwal, Chief Financial Officer of ACME Solar Holdings. “We have enhanced our projects’ credit ratings by demonstrating financial discipline and stability. The lower cost of debt strengthens our financial position as we expand capacity over the next three years.”

ACME Solar operates 2,540 MW of renewable energy capacity and aims to reach 6,970 MW within three years. The Andhra Pradesh (160 MW) and Punjab (30 MW) projects have been operational for about nine years, while the Rajasthan (300 MW) project has been running for three years.

Previous Investments

Earlier this year, ACME Solar invested around Rs 4,400 crore in a 1,200 MW interstate transmission system- connected project in Jaisalmer, Rajasthan. The company has also reduced its net debt by Rs 2,070 crore using proceeds from an initial public offering (IPO) while securing Rs 16,500 crore in additional debt for 1,700 MW of hybrid and FDRE renewable energy projects under construction.

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