ACME Solar Secures Rs. 2,491 Cr. Long-Term Funding to Refinance RE Projects

ACME Solar Holdings Ltd. has secured Rs. 2,491 crore long-term funding from State Bank of India (SBI) and Rural Electrification Corporation (REC) to refinance its operational Renewable Energy projects with a collective power generation capacity of 490 MW. This amount will be lent at a weighted average interest rate of 8.8%, and will be available to ACME Solar Holdings for the next 18-20 years (until the lifespans of projects covered).

The company has secured this funding for its existing RE projects in Punjab, Andhra Pradesh and Rajasthan. In Andhra Pradesh and Punjab, ACME Solar Holdings has solar power projects of 160 MW and 30 MW respectively, which have been operational for approximately 9 years. Also, ACME Solar has a 300 MW solar power project in Rajasthan which has been operational for the last 3 years.

Commenting on this financing, Mr. Purushottam Kejriwal, Chief Financial Officer of ACME Solar Holdings, said “The refinancing initiative aligns with our strategy to create an efficient capital structure while consistently reducing cost of debt. We have been able to improve our projects’ credit ratings by demonstrating our commitment to financial discipline and stability”.

As of now, ACME Solar Holdings has 2,540 MW of operational RE projects, which the company targets to increase to 6,970 MW of operational RE projects in the next 3 years.