Vector Green Energy, a Mumbai-based independent power producer focused on solar and wind energy has received an Rs 11 billion loan from the Indian Renewable Energy Development Agency (IREDA). Vector Green’s six operating solar projects will receive about Rs 11 billion out of the Rs 13.82 billion released.
The debt has been raised by Vector Green under a unique financing structure with attractive terms and the structuring has resulted in an enhancement of its rating from the A to the AA category. With this, Vector Green’s entire operating portfolio is now rated either AAA or AA on a non-recourse basis. The IREDA has disbursed loans of Rs 88.27 billion in the financial year 2020-21, which is the second-highest in the company’s history.
In September 2021, the IREDA unveiled plans for an initial public offering of new equity shares and the issuance of green bonds in both domestic and international markets to mobilise capital for lending. It also planned to establish an alternative investment fund (AIF) to attract significant institutional investors such as debt funds, pension funds, insurance funds, and environmental, social and governance funds. The AIF will assist IREDA in funding new projects for borrowers who are nearing their exposure limit. Asset-based securitisation is also in the works, with the agency issuing “pass-through certificates”.