Cleantech Solar, a Southeast Asia and India-focused solar energy systems developer, is planning to raise $200 million or `1,380 crore debt in external commercial borrowings (ECBs) over the next four to six months time, people close to the development told FE.
The Singapore-headquartered firm will utilise the fund to expand its capacity to 500 MW in the next couple of years from the existing 200 MW. Cleantech’s around three-fourth of the existing capacity is based in India and the rest in Southeast Asian countries.
According to sources, “Under ECB, the cost is expected to be cheaper by 100 basis points compared to domestic funds. A majority of the proceeds will be used to set up rooftop projects in India while the rest will be used to set up projects in Southeast Asian countries.”
The company did not respond to an email query sent by FE till the time of going to press.
UK-based Shell Plc acquired a 49% stake in Cleantech in January 2019 for $100 million as its first investment in alternate energy platform in Asia. After the Shell transaction, Raju Shukla, chairman and founder of Cleantech Solar, said, “We should cross 500 MW in a couple of years’ time and these investments will be used for aggressive expansions. The shift to alternate energy and solar is at a faster pace and we expect this trend to continue throughout the region.”
Over the last four years, Cleantech Solar has signed over 120 contracts with local and multinational corporations in the region representing over 200 MW of projects, with a majority being in operation and the rest under construction and development. In India, the company shares number one market position with 13% market share in the rooftop segment as per the latest report by Bridge to India.