Top Five Corporate Funding Deals of 2021 in the Indian Solar Market [Infographics]

The financing activity in 2021 has exceeded the pre-pandemic levels as the solar market in India has steadily recovered and is having one of its best years on record.

A total of $6.7 billion was invested in the solar sector in the first nine months of 2021, according to Mercom’s Q3 2021 India Solar Market Update Report. The investments have increased by 400% compared to the same period last year.

Three of the top five corporate funding deals were green bond issues, bringing in a total of ~$1.75 billion.

The top five corporate funding deals that grabbed the headlines in 2021:


Adani Green Energy raised $750 million through a senior green bond issue

Adani Green Energy raised $750 million through its maiden ListCo senior green bond issue. The bonds will have a tenor of three years at a coupon of 4.375%. The company will utilize the proceeds to fund the equity portion of the capital expenditure for under-construction renewable energy projects. It can draw up to $1.7 billion over the period subject to agreement of the structure.

ReNew Power received $610 million from the SPAC deal with RMG II

Independent renewable power producer ReNew Power received $610 million in net proceeds from the SPAC deal, including funds from RMG II’s former trust account and private placement in public equity. The company will use the proceeds to enhance its growth, fund operations, and pay off debt. With this deal, RMG II became a wholly-owned subsidiary of ReNew Energy Global. The company’s class A ordinary shares started trading on the Nasdaq on August 24, 2021.

ReNew Power raised $585 million through dollar green bonds

ReNew Power raised $585 million through green bonds listed on the Global Securities Market (GSM) of India International Exchange at GIFT International Financial Services Centre (IFSC). The bonds have a tenor of 7.25 years and a fixed interest rate of 4.5% per annum. In-principle approval has been obtained to list and trade the bonds on the India International Exchange (IFSC) Limited (India INX). The proceeds will refinance the debt of around 803 MW of operating wind and solar assets.

Azure Power raised $414 million through dollar green bonds

Solar project developer Azure Power, through its 100% subsidiary Azure Power Energy, announced the issuance of a dollar green bond of $414 million. The bonds will have a tenor of five years at a coupon of 3.575%. The company will primarily utilize the proceeds to refinance its existing $500 million Green Bond, issued in 2017 and will mature next year. The refinancing is expected to reduce debt cost by over 200 basis points for its 611 MW operational solar projects portfolio offered under the bond. The order book saw bids over $2 billion.

Virescent raised $288.4 million through NCDs and debt financing

Virescent Renewable Energy Trust (VRET), a renewable energy infrastructure investment trust (InvIT) from KKR’s Virescent Infrastructure, raised a total of ₹21.5 billion (~$288.4 million) through listed non-convertible debentures (NCD) and long-term debt financing. VRET raised ₹10 billion (~$134.41 million) in its maiden issuance across 3, 5, and 7 year-tranches. The proceeds will refinance existing debt at the special purpose vehicle level and fund future acquisitions. VRET has tied up an additional ₹10 billion (~$134.41 million) in long-term financing from L&T Finance to ensure a complete debt tie-up of its near-term acquisition pipeline. VRET has also availed a working capital facility of ₹1.5 billion (~$20.16 million) from Tata Capital to enhance its liquidity position and meet its credit rating requirements.