ACME Solar Holdings Ltd (ACME Solar), through its subsidiaries, has secured a debt tie-up of INR 4,725 crore from leading Indian financial institutions to fund the construction of renewable energy projects and optimise its capital structure by lowering financing costs. The financing and refinancing facilities carry long-term tenors ranging between 18 and 20 years.
Under new greenfield project financing, ACME Solar has raised INR 2,716 crore from Power Finance Corporation Ltd (PFC Ltd) for its 300 MW ACME Sigma FDRE project, which combines renewable energy generation with four hours of battery energy storage. In addition, the company has secured INR 800 crore from the National Bank for Financing Infrastructure Development (NaBFID) for its 150 MW ACME Platinum Solar plus energy storage project, which includes two hours of battery storage with 50% availability. Both projects have grid connectivity in place and are at advanced stages of construction. The NaBFID facility marks ACME Solar’s first greenfield project financing from the institution.
Separately, ACME Solar has refinanced INR 1,209 crore through Yes Bank for its operational 300 MW ACME Sikar Solar project. The refinancing is expected to reduce the cost of debt by 170 basis points initially, with an eventual reduction of up to 195 basis points. This also represents Yes Bank’s first long-term refinancing exposure to ACME Solar.
With this latest round of funding, ACME Solar has secured approximately INR 10,590 crore in greenfield financing in the current financial year, resulting in overall debt tie-ups covering more than 90% of the power purchase agreements (PPAs) signed for projects under construction. The company has also refinanced around INR 3,380 crore of debt, achieving an average interest rate reduction of about 135 basis points. In addition, a further rate reduction of around 60 basis points has been realised on approximately INR 4,035 crore of debt across other projects, including two operational assets that have moved to a fixed-rate regime with existing lenders. The measures align with the company’s long-term funding strategy to maintain a diversified mix of fixed and floating rate borrowings.
In parallel, ACME Solar has expanded its non-fund-based limits during the year with several banks, including ICICI Bank, Standard Chartered Bank, First Abu Dhabi Bank, and EXIM Bank. These facilities are aimed at supporting trade finance requirements during the construction phase and further reducing the overall cost of debt.
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