ReNew Power Broadens Its Debt Financing Source

After receiving a $250 million in debt financing as part of an agreement with the Overseas Private Investment Corp. (OPIC), the US government's development finance institution in March last year, Renew Power announced a long-term debt financing of US$ 390 Million from Asian Development Bank (ADB).

Backed up by Goldman Sachs Group Inc, including other investors like Abu Dhabi Investment Authority, Global Environment Fund, the company states this as its first transaction to include in its financing plans funding from ADB as well as Leading Asia's Private Sector Infrastructure Fund (LEAP- a funding arrangement provided by Japan International Cooperation Agency (JICA) and is administered by ADB.

The proceeds from this ADB investment will be utilized by the company to develop and expand capacities in Andhra Pradesh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh and Telangana. The company recently won the mandate to install 5 MW of renewable energy capacity pan-India for the Indian Railways as well. Apart from this, there have been reports of company contemplating an IPO.

Speaking about the fund raising, Mr. Sumant Sinha, Chairman & CEO, ReNew Power Ventures Pvt Ltd said, "The additional debt financing from Asian Development Bank will continue to help us retain our competitive advantage and will also fast track the execution of our existing projects as well as add new growth capacities".

Kailash Vaswani, Deputy CFO, ReNew Power said, "Through this transaction, we have further broad based our sources of debt financing. The funds raised from a marquee lender such as Asian Development Bank will allow us to build on our leadership position in the renewable energy space in India."

Commenting on the transaction, Michael Barrow, Director General, Private Sector Operations Department, Asian Development Bank said, "We strongly believe in ReNew Power's potential and execution capabilities. The company has shown tremendous growth over the last few years and we are pleased to provide further boost to help ReNew Power bridge the gap between India's current and growing energy needs and thus, making significant progress in lowering the country's carbon footprint."