IFC REWA ACME Solar Loan

The International Finance Corporation (IFC), a member of the World Bank, will provide a $50 million (~₹3.2 billion) loan to ACME Jaipur Solar Power Private Limited, a wholly-owned subsidiary of ACME Solar, to develop a 250 MW solar project in the Rewa Solar Park in Madhya Pradesh.

The IFC plans to issue up to $50 million (~₹3.2 billion) through non-convertible debentures (NCD) and will help mobilize up to $100 million (~₹6.4 billion) from other lenders. The IFC will provide long tenor fixed rate local currency financing with a debt repayment profile that matches cash flows of the project and the long-lived nature of the assets being financed.

The funds raised will be utilized by ACME Jaipur Solar Power Private Limited for project development, construction, financing, operations, and maintenance. According to Mercom’s India Solar Project Tracker, ACME Solar won the bid to develop 250 MW of solar by quoting a first-year tariff of ₹2.970 (~$0.044)/kWh and a levelized tariff of ₹3.30 (~$0.0494)/kWh.

The estimated project cost is around $200 million (~₹12.8 billion).

Recently, project developers ACME Solar, Solenergi Power, and Mahindra Renewables, signed power purchase agreements (PPAs) with the Madhya Pradesh Power Management Corporation Ltd. (MPPMCL) and the Delhi Metro Rail Corporation (DMRC) to supply power from the 750 MW Rewa Ultra Mega Solar Park.

The Government of Madhya Pradesh appointed IFC as the lead transaction advisor to enable the Rewa Ultra Mega Solar Park and the state government to facilitate the entire private investment for the Rewa Solar project.

IFC’s role includes advising on the project structure, identifying, recommending and upon request, helping implement solutions for key commercial, legal, regulatory, technical and system operations related to issues, and designing a transparent auction process to help select private entities develop the projects in the park.

In all, the IFC has promised mobilization of $550 million (~₹35.5 billion) in private investment for the 750 MW Rewa Ultra Mega Solar Park project. Recently, the IFC revealed plans to issue up to $50 million (~₹3.2 billion) through non-convertible debentures (NCD) and will help mobilize up to $100 million (~₹6.4 billion) from other lenders for Arinsun Clean Energy, a subsidiary of Solenergi Power Private Ltd. (SPPL), to develop 250 MW of solar in Rewa.

Image credit: Adityarai Infrastructure