The loan will be utilized to refinance the company’s portfolio of open access solar projects in India. It will also help optimize the overall capital structure and funding costs for the portfolio.
With this transaction, the solar developer has established a strategic partnership with NIIF IFL – Infrastructure Debt fund set up by the National Investment and Infrastructure Fund.
Royal Dutch Shell and Climate Investor One, managed by Climate Fund Managers, are strategic investors of Cleantech Solar.
Last year, Cleantech Solar received a green loan of $75 million (~₹5.67 billion) from the Singapore branch of ING Bank to support the company’s expansion across Southeast Asia. It also has loan facilities from SBI and Tata Cleantech Capital.
Cleantech Solar has over 600 MW of solar projects across India and Southeast Asia.
Debabrata Mukherjee, Chief Business Officer of NIIF Infrastructure, said, “The adoption of renewable energy by C&I consumers from open access projects can drive the next phase of India’s energy transition. C&I offtake of renewable energy is expected to witness significant growth and Cleantech Solar, being one of the leading players in this segment, is well-positioned to capitalize on this opportunity. NIIF IFL is delighted to have partnered with Cleantech Solar by extending a debt facility to support their business.”
“The new ₹2 billion (~$26.72 million) senior secured loan facility empowers Cleantech in their mission to initiate an energy transition in the region, an integral component to limiting the effects of climate change worldwide,” said Nathan Schmidt, Regional Head Asia at Climate Fund Managers.
According to Mercom’s 1H and Q2 2021 Solar Funding and M&A Report, debt financing activity stood at around $8.2 billion in the first half (1H) of 2021. This was 125% higher compared to $3.7 billion raised in 1H 2020. In 1H 2021, a record $2 billion was raised through seven securitization deals due to low interest rates.