Azure Power said it has refinanced its 600 MW solar power project at the lowest rate of interest in its portfolio to date. Azure Power is an independent sustainable energy solutions provider and power producer in India.
The company has successfully refinanced its existing project finance facility of ₹23.50 billion ($313 million or ₹2,350 crore) utilised towards construction of its largest project – 600 MW Interstate Transmission System-connected solar project implemented by Azure Power Forty Three Pvt Ltd, a company statement said.
The project was fully commissioned in December 2021.
The refinancing has been completed at a rate of interest of 7.2% per annum, which is fixed for 42 months and the lowest rate of interest for any project finance facility in terms of rupee financing for the company’s existing portfolio so far.
“Refinancing the original term loan was one of our highest priorities, even before the project was fully commissioned in December 2021. The facility will result in substantial savings in interest cost and will improve the project IRR significantly.
“We are overwhelmed with the response we get from the credit markets which basically reflects lenders’ confidence in our strong corporate governance standards, operational capabilities, and credit fundamentals,” said Pawan Kumar Agrawal, Chief Financial Officer, Azure Power.
L&T Finance Limited has acted as the sole underwriter for this refinancing facility.
