ACME Solar Gets ₹4,725 Cr Debt Tie-Up for Storage-Linked and Refinancing Projects

Gurugram-based ACME Solar Holdings Ltd said it has secured debt financing of Rs 4,725 crore from Indian financial institutions through its subsidiaries. The company said the funds will be used to develop renewable energy projects and to optimise its capital structure by lowering financing costs.

The financing package includes a mix of fresh funding and refinancing, with tenors ranging from 18 to 20 years, for the projects listed below.

New Greenfield Financings: Acme Solar has secured Rs. 2,716 crore from Power Finance Corporation Ltd (PFC Ltd) for 300 MW ACME Sigma FDRE project (Renewable with four hours of battery storage) and First greenfield Project financing for Acme from National Bank for Financing Infrastructure Development (NaBFID) of Rs. 800 crore from for 150 MW ACME Platinum Solar plus ESS project (with two hours of battery storage with 50% availability). Both these projects have connectivity in place and are in advanced stages of construction.

Refinancing: Additionally, Acme Solar had also secured Rs. 1,209 crore from Yes Bank towards refinancing the 300 MW ACME Sikar Solar operational project, enabling a cost reduction of debt initially by 170 bps and eventually by 195 bps. The company has secured its first long-term refinancing from Yes Bank for ACME Solar. In the current financial year, with this round of financing, the company has secured Rs. 10,590 crore of greenfield financing, leading to an overall debt tie-up of more than 90% of the PPA signed under-construction projects. 

Other Refinanced Projects

Acme Solar has further refinanced debt of Rs. 3,380 crore, achieving a ~135 bps rate reduction on the refinanced debt and an additional rate reduction of ~60 bps on Rs. 4,035 crore of debt for other projects. This includes two operational projects moving to a fixed rate regime with the existing lender. This initiative is also consistent with the company’s long-term funding strategy to maintain a well-diversified and strategic mix of fixed and floating rate borrowings. 

Furthermore, ACME Solar has also expanded non-fund-based limits from various Banks this year, including ICICI Bank, Standard Chartered Bank, First Abu Dhabi Bank, EXIM Bank, etc. These limits assist in reducing debt cost through trade finance during the construction stage of the project.