India’s ReNew Power has got a $1bn consortium loan from 12 global lenders led by Netherland’s Rabobank. The loan is India’s largest external commercial borrowing (ECB) for a single project in the renewable sector and will be used for its hybrid Round-the-Clock (RTC) battery-enabled project with 1.3GW and battery-enabled hybrid capacity. The company has entered a PPA (power purchase agreement) with the Solar Energy Corporation of India (SECI) for this project, to set up wind and solar farms across Karnataka, Rajasthan, and Maharashtra states of India. The interest rate is not known, but the company said that after hedging, it is expected to be lower than the current average cost of debt on its balance sheet. In April, Mitsui & Co Ltd, a global general trading and investment firm, partnered with ReNew for RTC project 49% stake. This ECB loan comes after ReNew Power refinanced its $525mn 6.67% 2024 notes with an Indian rupee debt issuance last month.
ReNew Power’s 4.5% 2028s traded 0.15 points lower at 86.91, to yield 7.27%.
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