Gurgaon-based ACME Solar Holdings has secured a ₹24.91 billion (~$298.92 million) long-term refinancing facility for 18 to 20 years from the State Bank of India and REC at a reduced weighted average interest rate of 8.8%.

ACME Solar will use the funds to reduce debt costs for its 490 MW renewable energy projects in Andhra Pradesh, Rajasthan, and Punjab.

The company also aims to secure a higher credit rating for its Andhra Pradesh (160 MW) and Punjab (30 MW) projects under a co-obligor structure.

The 300 MW Rajasthan project has been operational for three years, and the Andhra Pradesh and Punjab projects have been operational for about nine years.

The company aims to use the refinancing of these state-counterparty projects to support its long-term goal of securing credit upgrades and lowering overall financing costs across its operational projects.

Purushottam Kejriwal, Chief Financial Officer, ACME Solar Holdings, stated that the refinancing aligns with the company’s broader strategy of establishing an efficient capital structure while systematically lowering the cost of debt.

The company aims to strengthen its financial position by reducing interest expenses as it pursues capacity expansion plan over the next three years.

ACME Solar operates 2,540 MW of renewable energy projects and targets reaching 6,970 MW within the next three years.

Earlier this year, ACME Solar Holdings reported a consolidated revenue of ₹4.01 billion (~$48.46 million) for the third quarter of the financial year (FY) 2025, a 9.9% year-over-year growth from ₹3.65 billion (~$44.06 million) and a 35.8% increase from ₹2.95 billion (~$35.68 million) from the previous quarter.

In November 2024, ACME Sun Power, a wholly owned subsidiary of ACME Solar Holdings, secured a ₹37.53 billion (~$444.68 million) loan from REC to develop 320 MW Firm and Dispatchable Renewable Energy projects in collaboration with SJVN. The solar projects are situated in Jaisalmer, Rajasthan, and wind projects in Bhuj and Jam Khambhaliya in Gujarat.