ACME Solar Holdings, India’s leading renewable energy company and the flagship business of the ACME Group, has secured ₹2,491 crore in long-term project financing for a period of 18-20 years. This funding will be used to refinance existing debt and reduce financing costs for its 490 MW operational renewable energy projects located in Andhra Pradesh, Rajasthan, and Punjab.
The refinancing facility has been secured from the State Bank of India (SBI) and REC Limited at a lower weighted average interest rate of 8.8%. This move is expected to strengthen ACME Solar’s financial position by improving its credit profile and securing a higher credit rating for its Andhra Pradesh and Punjab projects under a co-obligor structure. By optimizing its debt profile, the company aims to enhance financial efficiency and lower overall interest costs across its operational projects.
Purushotta Kejriwal, Chief Financial Officer of ACME Solar Holdings, said in a statement, “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.”
ACME Solar has a well-established operational track record, with its Andhra Pradesh (160 MW) and Punjab (30 MW) projects running successfully for approximately nine years, while the Rajasthan project (300 MW) has been operational for about three years. As a key player in India’s renewable energy sector, ACME Solar currently operates 2,540 MW of installed capacity and has set an ambitious target to expand to 6,970 MW within the next three years. This strategic refinancing aligns with the company’s broader vision of improving credit ratings, reducing capital costs, and accelerating India’s transition to clean energy.
