In a first-of-its-kind transaction undertaken by a public sector undertaking, SJVN, a joint venture between the Government of India and the state of Himachal Pradesh, secured ₹100 billion (~$1.2 billion) construction financing facility to fund its upcoming renewable energy projects.

The financing was raised by Deutsche Bank, State Bank of India, Punjab National Bank, Bank of India and, Mitsubishi and United Financial of Japan Financial Group (MUFG) Bank.

SJVN undertook the initiative to secure the funding through its subsidiary SJVN Green Energy, with State Bank of India Capital Markets (SBI CAPS) acting as the sole advisor and arranger for the transaction.

The construction financing request is said to have received tremendous response from lenders and was over-subscribed.

The facility will be of a revolving nature and would allow SJVN to draw down funds on an ongoing basis as per the construction requirements of its projects. This is expected to enable the fast-tracking of its under-construction renewable energy projects and contribute to India’s target of achieving 500 GW of renewable energy by 2030.

“We are exhilarated to have secured this facility from five leading banks, which underscores the financial community’s recognition of our commitment to a greener and more sustainable future,” said Nand Lal Sharma, Chairperson and Managing Director.

He said the construction financing facility will be deployed strategically to develop solar and wind energy projects across India. These projects will create employment opportunities, boost the local economy, and contribute significantly to harnessing renewable energy.

The company’s renewable energy portfolio stands at 5,090.5 MW, out of which 179.5 MW is under operation, 1,860 MW is under construction, and 3,051 MW is under various stages of implementation.

SJVN Green Energy also received the go-ahead to form a joint venture with Maharashtra State Power Generation Company to develop 5,000 MW renewable energy projects. This is in addition to another joint venture between the company, the Government of Arunachal Pradesh, and Navyuga Engineering Company to execute the development of the 1,878 MW Oju Hydro Electric Project in Arunachal Pradesh.

The company is also in joint ventures with Nepal Electricity Authority & GMR Energy and Assam Power Development Company to implement the 900 MW Upper Karnali Hydro Electric Project and 1,000 MW renewable energy projects, respectively.

Last month, SJVN invited bids to purchase or lease up to 1,000 acres of land in Assam for 28 years to develop 200 MW of solar power projects.

In June, the company also invited bids to select renewable developers for the supply of 1,500 MW of power from interstate transmission system-connected renewable energy projects with energy storage capacities across India.