Piramal extends Rs 700 crore credit line to solar energy
Billionaire Ajay Piramal-owned Piramal Enterprises is shifting its key focus to non-conventional energy, billed as the most promising sector in a power-starved country, with its subsidiary Piramal Finance extending a Rs 700 crore credit line to Acme Solar Holdings.
“The deal was made through Corporate Finance Group (“CFG”) of Piramal Finance by introducing a new product – a Flexi Line of Credit – for the renewable energy sector,” the company said in a release on Wednesday.
This aims to make a line of funding available to the borrower based on operational projects, with the flexibility to draw/repay during the tenure.”
CFG has been one of the early movers within the renewable energy space. It has diversified over time both in terms of sector and in offerings. CFG is now sector agnostic and offers capital in the form of senior debt, acquisition finance, promoter finance, private equity exits alongside its previous focus on mezzanine investments.
With presence in 14 states ACME is one of the largest Independent Power Producers (IPP) in solar energy space in the country with a portfolio of over 1.8GW. The current operational capacity by July end is over 1 GW, reaching 1.4 GW by September end and company is present across the 14 states.
“Our first round of funding has already seen pre-payments taking place in a short span of time,” said Khushru Jijina, Managing Director, Piramal Finance. “They are among the best managed renewable energy companies in the country, in terms of quality of portfolio and growth.”