ReNew Energy Global has secured a $1bn project finance facility to build out 1.3GW of hybrid wind and solar in India.
Rabobank led a consortium of 12 international lenders providing the external commercial borrowings loan, which will be used to build a ‘Round-the-Clock’ battery-enabled complex.
The project involves deploying 1.3GW of wind and solar farms across Karnataka, Rajasthan, Maharashtra states.
The interest rate, after hedging, is expected to be lower than the Company's current average cost of debt on its balance sheet.
ReNew has signed a PPA with the Solar Energy Corporation of India on the project, which is 49% owned by Japanese investor Mitsui.
Sumant Sinha, Founder, Chairman and CEO, ReNew, said: "This loan—the single-largest project finance in India's renewable sector—highlights the interest of global lenders in ReNew as it helps spearhead India's historic clean energy shift and shows its continued ability to access financing at much lower rates than several years ago, despite the current volatility in the currency markets and a rising interest rate environment.
“This also shows the financial community's faith in our growth plans, innovation, project execution abilities, and sound monetary management. We will work harder to build on this much-valued trust."