ReNew Power has entered into an external commercial borrowings (ECB) project finance loan agreement with 12 international lenders led by Rabobank. The renewable project has a capacity of 1,300 MW with round-the-clock (RTC) power supply and battery-enabled hybrid capacity. According to the official press release of the company, a $1 billion loan has been secured through a special purpose vehicle. The loan will be used to fund the company’s hybrid RTC battery-enabled project.
The company stated that the interest rate, after hedging, is anticipated to be lower than the company’s current average cost of debt on its balance sheet. For this project, the clean energy firm has signed a power purchase agreement (PPA) with the Solar Energy Corporation of India. This PPA will result in wind and solar farms to be built across states of Karnataka, Rajasthan, and Maharashtra. The RTC project will provide power 24*7 competing with the baseload of fossil fuel energy providers.
Recently in July 2022, ReNew Energy Global reported that it has effectively refinanced its dollar-denominated bonds maturing in 2024 while amortising project loan from an Indian nonbank banking institution. The company issued bonds worth $525 million in 2019 having a maturity date in 2024.