Avaada Energy has closed a ₹44.71 billion (~$535.3 million) refinancing deal with the National Bank for Financing Infrastructure and Development (NaBFID) for four inter-state transmission system (ISTS)-connected solar projects with a combined capacity of 1.7 GW in Rajasthan.

The financing from NaBFID, a specialized government-owned development finance institution, will enable the prepayment of existing loans and offer a successful exit to multiple lenders. The facility will be approved and disbursed as a 20-year rupee term loan facility.

The structure has been rated as ‘AA (Stable)’ by CareEdge Ratings.

“We have achieved a major milestone by refinancing four of our largest operating assets in Rajasthan. These assets have been operational for approximately two years. This is one of the largest transactions ever conducted in India’s renewable energy market. It allows us to pay off existing lenders and welcome NaBFID as the new single lender. This accomplishment underscores the keen interest of financial institutions in supporting renewable energy projects that offer stable, long-term cash flows. Securing a better interest rate for operational assets further strengthens our bottom line while delivering value to all stakeholders,” said Vineet Mittal, Chairman of Avaada Group.

Avaada Energy was among the winners of NTPC’s auction to set up 1,500 MW of ISTS-connected solar power projects (Tranche II) across India. Avaada was awarded 500 MW out of the 750 MW quoted capacity at a tariff of ₹2.6 (~$0.0313)/kWh.

Avaada Energy was also a winner in the Solar Energy Corporation of India’s auction to set up 1,500 MW ISTS-connected solar power projects in India under Tranche XIV. Avaada quoted the lowest tariff of ₹2.57 (~$0.0310)/kWh to win 300 MW.

Last April, Avaada Group raised $1.07 billion from Brookfield Renewable to support its green hydrogen and green ammonia projects in India. The funding is part of the company’s ongoing plan to raise $1.3 billion.

Avaada Energy was the top utility-scale solar project developer in 2022, according to Mercom’s India Solar Market Leaderboard 2023.