India's ReNew lands USD-1bn loan for hybrid project with Mitsui

Indian renewable power producer ReNew Energy Global Plc (NASDAQ:RNW) has agreed a USD-1-billion (EUR 987m) loan with a group of 12 international lenders for its gigawatt-scale hybrid project ensuring round-the-clock power supply.

ReNew said in a statement today that it has secured the largest External Commercial Borrowings (ECB) project finance loan in India’s renewable energy sector from a banking consortium led by Rabobank.

The transaction was oversubscribed 1.4 times and, according to the announcement, the interest rate, after hedging, will be lower than the company's current average cost of debt on its balance sheet.

ReNew will use the loan to finance the 1.3-GW battery-enabled renewables hybrid in which Japanese trading house Mitsui & Co Ltd bought a 49% stake a few months back. The scheme calls for the construction of three wind farms and one solar plant with up to 100 MWh of battery storage across the states of Rajasthan, Karnataka and Maharashtra.

The Solar Energy Corporation of India (SECI) has agreed to buy power from this project at an initial price of INR 2.90 (USD 0.037/EUR 0.036) per kWh. The rate will rise by 3% annually for a period of 15 years, before stabilising for the remaining decade of the contract.

(USD 1.0 = EUR 0.987)

(INR 10.0 = USD 0.126/EUR 0.124)

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