Piramal Finance, a subsidiary of Piramal Enterprises, approved additional funding of Rs.7 billion (~$107.8 million) to ACME Solar Holdings. The funds were approved under a new product for the renewable energy sector, a Flexi Line of Credit, which aims to make a line of funding available to the borrower based on operational projects, and includes the flexibility to draw and repay during the tenure.
The deal was made through Corporate Finance Group (“CFG”) of Piramal Finance, according to a company release. Prior to this, Piramal Finance had provided ACME Solar Holdings for Rs.4.99 billion (~$76.8 million) in July 2016, in partnership with APG.
“Our first round of funding has already seen pre-payments taking place in a short span of time. We are pleased to offer the second round of funding to ACME Group with our unique Flexi Line of Credit as ACME has a strong track-record of execution, with projects spread across the country, which reduces the off-take risk, and has signed power purchase agreements for the complete portfolio,” stated Mr. Khushru Jijina, Managing Director, Piramal Finance.
“The current funding provides us with the required flexibility to invest in solar and electric transportation business and ensure timely completion of projects,” stated ACME Group Chairman and Managing Director, Mr. Manoj Kumar Upadhyay.
According to Mercom’s India Solar Project Tracker, ACME Solar has 696 MW of solar in operation and 1,090 MW of solar under development.