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ReNew Power Ventures Private Limited has secured a long-term debt financing of $390 million from Asian Development Bank (ADB).
In a statement, ADB noted: “With the financing, ReNew Power will develop photovoltaic solar-power projects with a combined capacity of 398 MW in Jharkhand and Telangana, and wind power projects with a combined capacity of 311 MW in Andhra Pradesh, Gujarat, Karnataka and Madhya Pradesh.”
Commenting on the funding, Kailash Vaswani, Deputy Chief Financial Officer, ReNew Power, told BusinessLine : “The portion for wind projects will be paid back over an 18-year tenor; the portion for solar projects will be paid over a 21-year tenor. The interest rate for the first three years will be around 9 per cent. After that, the DISCOM credit rating at that point in time will determine the margin ADB would charge us. ReNew Power will have the option of refinancing the debt after three years if we don’t like the margin asked of us.” According to a ReNew Power statement, this is the first transaction to be included in its financing plans resources from ADB as well as Leading Asia’s Private Sector Infrastructure Fund (LEAP).
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