IDFC arm raises Rs250 crore to refinance two solar plants
Mumbai: IDFC Alternatives Ltd’s India Infrastructure Fund II has raised long-term project finance of Rs250 crore by selling non-convertible debentures to infrastructure debt funds and financial institutions. The proceeds will be used to refinance two of its solar plants, which it has recently acquired from Gurgaon-based Punj Lloyd group and to repay existing loans.
The acquisition of the two plants, both located in Punjab, was made through IDFC’s renewable energy platform Vector Green Energy Pvt. Ltd. The company has a long-term agreement with the state utility for the sale.
“We are focussed on acquisition opportunities that have completed at least a year of operations and are expected to generate near term cash flows for equity,” said Aditya Agarwal, partner, IDFC Alternatives. IDFC, through its renewable energy platform, entered into a definite agreement with US-based First Solar Power India Pvt. Ltd, and other affiliates of the First Solar Group, to acquire the 190 MW of solar power assets across seven projects in India, VCCircle had reported in July.
The seven solar power projects are located across Andhra Pradesh and Telangana. The projects have long-term power purchase agreements with state utilities.
Agarwal further added that the scaling up has to be done carefully given the recent headwinds in the sector on account of intensive competitive bidding and low tariff.