- ACME Solar has raised 7 billion INR ($108 million) from Corporate Finance Group (CFG) of Piramal Finance Ltd.
- Previously, Piramal Finance along with Dutch pension fund asset manager APG Asset Management had lent 4.99 billion INR ($77 million) to ACME Solar in July 2016
- ACME will use the fresh funding on its solar and electric transportation business to ensure timely completion of projects
- CFG funding uses a new product line, the Flexi Line of Credit, for renewable energy sector
Indian renewable energy company ACME Solar Holdings Ltd. has raised 7 billion INR ($108 million) from Corporate Finance Group (CFG). CFG is the non-real estate lending arm of Piramal Finance Ltd., a subsidiary of Piramal Enterprises Ltd.
This is a repeat funding to ACME from Piramal Finance. Back in July 2016, Piramal had invested 4.99 billion INR ($77 million) along with its partner Dutch pension fund asset manager APG Asset Management. ACME Solar used that money to buy a stake from EDF Energies Nouvelle and EREN Renewable Energy. There were reports that the two had broken off their association with ACME owing to the company bidding aggressively for solar projects in October 2016 (see EDF & ACME Call Off Partnership).
“The current funding provides us with the required flexibility to invest in solar and electric transportation business and ensure timely completion of projects,” said Manoj Kumar Upadhyay, ACME Group chairman and managing director in a statement reported by local media.
This round of funding from CFG comes in the form of a so-called Flexi Line of Credit, which is a new product line of the company for the renewable energy sector.
“ACME has a strong track record of execution, with projects spread across the country, which reduces the off-take risk, and has signed PPAs for the complete portfolio,” said Managing Director, Piramal Finance, Khushru Jijina. “In addition, our first round of funding has already seen pre-payments taking place in a short span of time.” The company plans to continue investing in sustainable energy.
ACME Solar has a solar power portfolio of over 1.8 GW spread across 14 Indian states. By the end of September 2017, its operational capacity is supposed to increase to 1.4 GW from the current 1 GW. It recently made big headlines when it won 200 MW of solar power capacity to be developed at Bhadla Phase III Solar Park for a landmark tariff of 2.44 INR ($0.037) per kWh (see ACME Wins 200 MW At 2.44 INR Record).