ACME Solar Holdings has raised Rs 1,100 crore in domestic funding from State Bank of India (SBI) for its subsidiary. In its regulatory filing the company highlighted that the funds will be used to refinance existing debt and lower financing costs by nearly 100 basis points for its 300 MW renewable energy project in Rajasthan.
SBI funding to support refinancing
The funding from SBI has been secured for a tenure of nearly 17 years. The company said the refinancing move is in line with its strategy to optimise financing costs across its portfolio and strengthen its credit profile. ACME Solar has been able to improve its projects’ credit ratings by showing financial discipline and stability. The company highlighted that the Rajasthan project has been operational for about six months and has consistently maintained optimum capacity utilisation factor (CUF) levels.
ACME Solar’s ACME Venus Urja secures Rs 3,892 crore SBI funding
On September 11, ACME Solar’s subsidiary, ACME Venus Urja, secured Rs 3,892 crore from SBI to set up a 400 MW Firm and Dispatchable Renewable Energy (FDRE) project in Barmer, Rajasthan. The 19-year financing was SBI’s largest funding to ACME to date and also marked the bank’s first loan for one of its FDRE projects.
The share price of ACME Solar
The share price of ACME Solar has risen 27.14% so far this year and 49.84% in the past six months.
ACME Solar Holdings has an operational capacity of 2,890 MW. Its portfolio includes solar, wind, storage, FDRE and hybrid solutions with an in-house EPC and O&M division.