ReNew Power secures US$ 390 million debt funding from ADB

Mumbai: CLEAN ENERGY company ReNew Power Ventures Pvt. Ltd on Tuesday said it has secured long-term $390 million debt funding from its existing investor Asian Development Bank (ADB).

ReNew will use the proceeds from the ADB investment to develop and expand capacities of 709 megawatt (MW) across Andhra Pradesh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh and Telangana, the company said in a statement.

“This is the first transaction to include in its financing plans funding from ADB as well as Leading Asia’s Private Sector Infrastructure Fund (LEAP). LEAP is a funding arrangement provided by Japan International Cooperation Agency (JICA) and is administered by ADB,” the statement said.

ReNew Power is backed by Goldman Sachs Group Inc. Other investors in the company include Asian Development Bank, Abu Dhabi Investment Authority and Global Environment Fund.

In March 2016, ReNew had received $250 million in debt financing as part of an agreement with the Overseas Private Investment Corp. (OPIC), the US government’s development finance institution.

In October 2015, RENEW had raised $265 million in fresh equity from investors, including sovereign wealth fund Abu Dhabi Investment Authority. In its three rounds of funding since starting operations, ReNew had raised a total of $650 million from its investors.

Founded in 2011 by Sumant Sinha, a former chief operating officer at wind-turbine maker Suzlon Energy Ltd, ReNew Power has over 3,000 MW or 3 gigawatt (GW) of commissioned and under-construction CLEAN ENERGYcapacity across Delhi, Gujarat, Haryana, Punjab, Madhya Pradesh, Rajasthan, Maharashtra, Karnataka, Telangana, Jharkhand, Uttar Pradesh, West Bengal, Tamil Nadu, Himachal Pradesh and Andhra Pradesh.

“The additional debt financing from Asian Development Bank will continue to help us retain our competitive advantage and also fast track the execution of our existing projects as well as add new growth capacities,” Sinha said in a statement.

ReNew Power also emerged as the largest winner in the recent auctions conducted by THE SOLAR ENERGY Corp. of India (SECI), winning almost 10â„… of the total capacity of 500 MW rooftop projects. The company has also won the mandate to install 5 MW of renewable energy capacity pan-India for the Indian Railways.

The RENEWABLE ENERGY producer has a target to set up over 11 GW of combined wind and solar capacity in the next four years.

India has a target of installing 100 GW of SOLAR POWERcapacity and 60 GW of wind power capacity by 2022.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.