In a move to optimise its capital structure, ACME Solar Holdings has secured a long-term refinancing facility of ₹2,491 crore for its operational renewable energy projects in Andhra Pradesh, Rajasthan, and Punjab. 

The financing has been provided by State Bank of India and Rural Electrification Corporation at a reduced weighted average interest rate of 8.8%, replacing existing higher-cost debt.

The 18–20 year refinancing deal covers 490 MW of operational capacity across three states, with project track records of approximately 9 years in Andhra Pradesh (160 MW) and Punjab (30 MW), and 3 years in Rajasthan (300 MW).

This move is expected to significantly improve the credit profile of ACME’s Andhra Pradesh and Punjab entities, supported by a co-obligor structure. 

A co-obligor structure is one where both project entities are jointly liable for the loan, reducing risk for lenders and enabling better financing terms. In this case, Andhra Pradesh and Punjab project entities are jointly committing to repay the loan, rather than securing financing separately.

The better credit rating will not only enhance financial stability but also contribute to the ACME Group’s broader objective of lowering interest costs across its portfolio.

“The refinancing initiative aligns with our strategy to create an efficient capital structure while consistently reducing cost of debt. We have been able to improve our projects’ credit ratings by demonstrating our commitment to financial discipline and stability. The reduced cost of debt enables us to further strengthen our financial position as we pursue capacity growth over the next three years.”, said Purushottam Kejriwal, CFO of ACME Solar Holdings,

ACME Solar currently operates 2,540 MW of renewable energy capacity and aims to expand to 6,970 MW by 2028.

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