The financial arm of Piramal Enterprises Ltd (BOM:500302) has sanctioned a INR-7-billion (USD 108m/EUR 95m) funding to Indian solar power producer ACME Solar Holdings Ltd (ASHL).
For the purpose of the deal, Piramal Finance Ltd, through its Corporate Finance Group (CFG), introduced a new product for the renewable energy sector called “Flexi Line of Credit”. The goal is to make available to the borrower a line of funding based on operational projects, with the flexibility to draw and repay during the tenure, it said in a statement.
“The current funding provides us with the required flexibility to invest in solar and electric transportation business and ensure timely completion of projects. Given the growth dynamics of the renewable space in India we believe renewables would constitute major portion of India’s installed capacity,” said Manoj Kumar Upadhyay, ACME Group’s chairman and managing director.
This is the second time Piramal Finance invests in the particular company. In July 2016, it teamed up with Dutch pension fund APG Asset Management NV to pour INR 4.99 billion into the firm.
ACME Solar’s portfolio exceeds 1.8 GW, with a current operational capacity of over 1 GW. The company’s operational plants are expected to reach 1.4 GW by September.
(INR 10 = USD 0.154/EUR 0.136)
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