Vector Green Energy has completed the refinancing of two solar projects with 223 MW of combined capacity in Telangana.

The refinancing was initially sought after the company acquired the projects from First Solar late last year. “Along with the acquisition, the SPVs (special purpose vehicles) have also raised long term non-recourse financing from IndusInd Bank and L&T Infra Debt Fund to refinance the existing project lenders. IIB and L&T Finance have together sanctioned more than ₹10 billion (~$156 million) to Vector Green toward the acquisition of the First Solar portfolio,” Vector Green Energy said in a press release.

Vector Green Energy is a portfolio company of India Infrastructure Fund II (IIF) and acts as an operating cum holding company for IIF II’s control investments in the renewable energy space. Vector Green is managed by IDFC Alternatives.

Currently, Vector Green Energy is set to acquire another 240 MW of operating capacity from different owners. IIF II expects to complete these acquisitions by March 2018. According to the company, these acquisitions will expand Vector Green’s operating base to 350 MW.

In August 2017, Mercom reported IIF II had raised ₹2.5 billion (~$39 million) through the sale of non-convertible debentures.  The funding was intended to refinance two solar projects in Punjab that IDFC Alternatives had acquired from Punj Lloyd and to repay debt.

IIF II was not the only company active in the large-scale project funding space during 2017. According to Mercom’s Q4 2017 Solar Funding and M&A Report, large-scale project funding for solar projects across the globe increased to a total of $14 billion raised by 167 deals last year from $9.4 billion raised by 133 deals in 2016.

Image credit: First Solar