Construction Industry News
Azure Power has announced that it has refinanced its 600 MW solar project at the lowest interest rate in its portfolio to date.
The solar company has successfully refinanced its current Rs 2,350 crore project financing facility which is being used for the construction of its largest project – 600 MW Interstate Transmission System Connected Solar Project executed by Azure Power Forty Three Pvt Ltd.
In December 2021, the project was fully authorized. The refinancing took place at an interest rate of 7.2% per annum, fixed for 42 months.
The lowest rate to date for a project financing facility in terms of rupee financing for the company's existing portfolio.
Pawan Kumar Agrawal, Chief Financial Officer, Azure Power, told the media that refinancing was one of their top priorities even before the project's commissioning in December 2021.
The facility would provide significant savings in interest costs and also improve the internal rate of return (IRR) of the project.
He said they have been overwhelmed by the credit market response, demonstrating lenders' confidence in their strong corporate governance standards, operational capabilities and credit fundamentals.
L&T Finance Limited acted as underwriter for this refinancing facility.
Azure sells power to government companies and individual industrial and commercial customers across the country.
