BackAcme Solar seeks additional $66 million loan from IFC
The project is estimated to cost $136 million (Rs808 crore), according to IFC disclosures posted on the website
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Mumbai: Acme Solar Energy Pvt Ltd (ASEPL) is seeking loan syndication of up to $66 million (Rs388 crore) from International Finance Corp (IFC), a part of the World Bank group, for its 100 megawatts (MW) solar power plant in Jodhpur district of Rajasthan.
The project is estimated to cost $136 million (Rs808 crore), according to IFC disclosures posted on the website.
Manoj Kumar Upadhyay, founder, chairman and managing director, ACME Group confirmed the development.
“We are thankful to IFC for considering our proposal to fund these projects. Such moves validate financial institutions interest in renewable story of India. Clear policies and focus of the current government in renewable sector have given huge impetus for solar industry in the country," Upadhyay added.
IFC has already provided a senior loan of $34 million (Rs202 crore) for the project. This is the second and final tranche of the overall envelope of debt funding amounting to $50 million, which IFC had sanctioned to ASEPL for its various projects.
The Rajasthan project is expected to be commissioned by April 2015. The off taker for the Project will be Solar Energy Corporation of India (SECI), a government of India entity. SECI plans to sign an Engineering, Procurement and Construction (EPC) and Operations and Maintenance (O&M) agreements for the project with Acme Cleantech Solutions Limited and ASEPL respectively.
Last year, IFC had provided the first tranche of $12.5 million senior loan to ASEPL for its 25 MW Madhya Pradesh solar power plant. The firm is also developing another 25 MW solar power plant in Odisha.
IFC has a committed portfolio of about $340 million in renewable energy projects in India.
On 11 September, IFC had announced that it will lend $50 million to two wholly-owned subsidiaries of Continuum Wind Energy (India) Pvt. Ltd for developing a 170 megawatt wind power plant in Madhya Pradesh. IFC has also helped mobilize a loan of $100 million for the project from Yes Bank Ltd.
So far in 2014, IFC has invested more than almost $1 billion across renewable energy, banking and financial services, pharmaceuticals and affordable healthcare segments.
Renewable energy is a significant area for investment for IFC. Other than the ASEPL and Continuum deal, in 2014, IFC has invested around $64 million in two deals in the renewable energy space, while in 2013, it made an investment of $73 million across three deals in the sector.
India is the biggest investment destination for IFC.
IFC’s India portfolio stood at $4.5 billion at the end of 30 June, 2013, as per IFC’s website.
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