IDFC Solar Project Refinancing

IDFC Alternatives through its India Infrastructure Fund II has raised ₹2.5 billion (~$39 million) through the sale of non-convertible debentures.

The fund will be utilized to refinance two solar projects in Punjab that IDFC Alternatives acquired from Punj Lloyd and to repay debt, said Mr. Aditya Agarwal, Partner, IDFC Alternatives. The tenure is 18 years, and one infrastructure debt fund and one financial institution subscribed to the non-convertible debentures, added Mr. Agarwal.

When asked about IDFC’s expansion plan in the Indian solar sector, Mr. Agarwal said, “Until we reach 500 MW capacity, acquisition is the only tool IDFC will utilize. Once we cross 500 MW, we will start looking at project construction.”

According to Mercom’s India Solar Project Tracker, IDFC Alternatives acquired three solar projects aggregating 45 MW capacity from Punj Lloyd at an estimated enterprise value of ₹3.5 –3.75 billion (~$52.3-56 million).

Mercom recently reported that IDFC Alternatives’ India Infrastructure Fund II (IIF II), through its wholly-owned subsidiary Vector Green Energy, entered into definitive agreements with First Solar Power India and its affiliates to acquire seven operating solar projects with a total capacity of 190 MW in the Indian states of Andhra Pradesh and Telangana.