ReNew Power obtains $1 billion ECB loan for the single largest RE project in India
ReNew Power has announced that it has obtained around $1 billion, which is roughly ₹7,900 crore loan through the External Commercial Borrowings (ECB) route. It claims that this is the single largest ECB finance loan for a single renewable energy (RE) project in India.
The loan has been tied up with 12 international lenders, led by Rabobank. It is also ReNew's largest ECB loan so far.
As ReNew rapidly builds its portfolio, this $1 billion loan has been tied up through a special purpose vehicle (SPV) and will be deployed for its hybrid Round-the-Clock (RTC) battery-enabled project.
Speaking on the ECB loan, ReNew Power Chairman & CEO, Sumant Sinha said, "This loan highlights the interest of the global leaders 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."
This also shows the financial community's faith in the company's growth plans, innovation, project execution abilities, and sound monetary management. We will work harder to build on this much-valued trust, he added.
The RTC project will supply power day and night, and compete against the baseload of fossil-fuel energy providers such as coal, Sinha noted. The ECB loan follows ReNew's refinancing last month of its dollar-denominated bonds with domestic borrowings, which the company claims is the first Indian RE company to do so. It refinanced its 2024 maturity dollar-denominated bonds worth $525 million, which were issued in 2019.