ACME Solar Secures Rs 1,100 Cr SBI Refinancing for 300 MW Rajasthan Project

ACME Solar Holdings has recently secured Rs. 1,100 crore in domestic funding for its subsidiary. The project has an operational track record of about six months and has been consistently maintaining optimum CUF levels.

In a press release, the company said it secured refinancing for the project from the State Bank of India (SBI) for a tenure of approximately 17 years. The financing is consistent with its strategy to optimize costs across the portfolio and strengthen its credit profile through rating upgrades. Readers will note that a refinancing does not usually lead to any additional debt, just a reworking of existing debt at better terms. 

The company explained that it obtained a CRISIL AA- rating to refinance the existing debt and reduce financing costs by around 100 basis points (bps) for its 300 MW renewable energy project in Rajasthan. This has helped improve its credit rating by demonstrating a commitment to financial discipline and stability. The reduced cost of debt enables ACME Solar to strengthen its financial position as it pursues significant capacity growth over the next few years.

ACME Solar's Previous Project Funding From SBI

Previously, ACME Solar Holdings’ subsidiary, ACME Venus Urja Private Limited, secured long-term project funding of Rs. 3,892 crore from the State Bank of India (SBI). This funding was used to develop a 400 MW Firm and Dispatchable Renewable Energy (FDRE) project in Barmer, Rajasthan, with repayment spread across 19 years. It was SBI’s first financing in ACME’s FDRE projects.

In April 2025, ACME Solar Holdings 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 facility, provided by the State Bank of India (SBI) and REC Ltd, also helped improve the company’s credit profile and resulted in higher credit ratings for its Andhra Pradesh and Punjab projects under a co-obligor structure.

Post its successful IPO, ACME has aligned itself more towards FDRE and RTC projects, that promise higher returns. The firm's debt equity ratio, which had improved significantly post IPO, has allowed it to leverage its balance sheet well for new projects, at better terms.