The Asian Development Bank (ADB) announced that it has signed an agreement to invest $15 million in Avaada Energy Private Limited (AEPL) to help expand the company’s solar generation capacity in the country.

According to its press release, this investment will come from ADB’s Ordinary Capital Resources and from Leading Asia’s Private Infrastructure Fund (LEAP), with both funds investing $7.5 million each.

In its press note, the bank added that this was its second investment in Avaada Energy after the first round of $50 million invested in April 2019.

The solar developer earlier said that it had secured financing of over $143 million in the form of equity infusion from ADB, German development bank – DEG, Dutch development finance company- FMO, and promoters’ equity.

According to Avaada, the company has around 1 GW of operational solar projects in the country. It added that the new investment would be utilized to expand its capacity to over 3.5 GW.

“The project is part of ADB’s ongoing support to India’s renewable energy sector and will help the Government of India meet its targets for clean power generation. We are pleased to enhance our commitment in AEPL and expect this investment to send positive signals to global investors to continue supporting the growth of renewable energy in India,” said Shantanu Chakroborty, Director of Infrastructure Finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department.

In November 2019, PROPARCO, a French development financial institution, also announced a $15 million equity investment in Avaada Energy. PROPARCO provides funding and support to both businesses and financial institutions across Africa, Asia, Latin America, and the Middle-East.

Notably, Mercom’s 1H and Q2 2020 Solar Funding and M&A Report stated that globally solar companies have raised corporate funding (including venture capital funding, public market, and debt financing) of  $4.5 billion compared to $6 billion in 1H 2019, a 25% drop year-over-year.