ACME Solar Raises $334 Million Through Offshore Green Bonds

India’s solar power developer ACME Solar has today announced raising USD 334 million through offshore green bonds.

The investment has been raised for 12 of ACME’s solar projects in India, and it will be funded by U.S. dollar-denominated green bonds.

These bonds have received the green certification from Climate Bonds Initiative. Also, they will be listed on Singapore Exchange Securities Trading Ltd. The bonds have a coupon rate of 4.7% and come with a tenure of five years.

ACME will issue non-convertible debentures for its projects after the closing of the bonds, which is subject to customary closing conditions. ACME broke the news through its Twitter handle tweeting,

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@ACME_Solar is glad to share the overwhelming outcome of our issuance of NCDs worth $334M to overseas investors in connection with a green bond issuance. This success is testimony to the thriving solar sector in India and a vote of confidence in the quality of our projects. pic.twitter.com/5668KXlnFs

— ACME Cleantech Solution Private Limited (@Acme_Solar) July 30, 2021

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The investment is the outcome of overseas investors in connection with green bond issuance. The majority of the investors were from Asia-Pacific (56%), followed by 22% from Europe, Middle East, and Africa. Investments from North America and Latin America covered 24%.

Speaking of the investment raised, the Founder & Chairman of ACME Group, Mr. Manoj K Upadhyay stated, “I am very thankful to all the investors for their participation and confidence in us. We have always been supported well by our Indian lenders, and we are delighted to receive encouraging support from international investors as well. This will broaden our source of capital.”

“ACME aims to play a key role in making cost-effective foreign capital available for India’s renewables growth target of 450 GW by 2030,” expressed Neeraj Gupta, CFO, ACME Solar.

Recently, ACME Solar won a 300 MW win in Maharashtra State Electricity Distribution Company Limited (MSEDCL)’s 500 Mw solar tender. ACME bid at Rs 2.42 /unit.

ACME’s total solar portfolio stands over 5500 MW while 2900 MW is commissioned and around 2600 MW is under construction.

Earlier in June 2021, ACME Solar had announced signing a deal with Brookfield Renewable, an owner and operator of renewable assets, for a 450 MW solar power project in Rajasthan, India.