Avaada Energy Secures Green Financing of INR 1,190 Cr for New Solar Project in Gujarat

Mumbai, May 2, 2024: Avaada Energy, the renewable energy arm of Avaada Group, is pleased to announce that it has secured Green Financing of about INR 1,190 crore (~USD 143 million) from India’s largest public sector lender, the State Bank of India (SBI).

This financing will support the development of a 400 MWp utility-scale solar PV power project in the Surendra Nagar district of Gujarat. This project underlines Avaada’s commitment to expanding its footprint in renewable energy, leveraging strategic financing to foster growth and innovation. The entire power generated from the project will be procured by Gujarat Urja Vikas Nigam Limited (GUVNL), an apex body of the Government of Gujarat engaged in the bulk purchase and sale of electricity.

This landmark transaction marks Avaada’s first endeavour in developing a greenfield project under an existing Special Purpose Vehicle (SPV) that already possesses an operational project. This strategic arrangement will enable the organization to optimize its capital structure and simplify the ownership structure of its project subsidiaries, demonstrating Avaada’s approach to managing and expanding its renewable asset base.

The financing from SBI, sanctioned and disbursed as a 20-year project loan facility, was obtained at competitive terms, showcasing Avaada’s strong project financing capability.

Commenting on the significant development, Mr. Vineet Mittal, Chairman of Avaada Group, said, “We are delighted to strengthen our relationship with the State Bank of India through our project financing agreement. This partnership not only reflects our strategic vision to build a diverse and high-quality portfolio of energy transition assets but also highlights the trust and commitment of leading financial institutions to support renewable energy projects with stable, long-term cash flows.”