Piramal Finance Limited (PFL), Unit of Piramal Enterprises, has extended sanctioned credit of Rs 700 crore to ACME Solar Holdings Ltd for renewable energy projects. The funding is being done through a Flexi Line of Credit. Under this arrangement, the borrower has the flexibility to draw/repay during the tenure for operational projects.
Piramal Finance in a statement said that ACME, an Independent Power Producer (IPP) in solar energy space in India, has a portfolio of over 1.8 GW. Khushru Jijina, the Managing Director, Piramal Finance, said that this is the second round of funding to ACME group.
PFL had first invested Rs 499 crore in ACME in July 2016, together with its partner APG. Its projects are spread across the country, which reduces the off-take risk and has signed Power Purchase Agreements for the complete portfolio.
The first round of funding has already seen pre-payments taking place in a short span of time, PFL said.
ACME Group Chairman and Managing Director, Manoj Kumar Upadhyay, said, the current funding provides us with the flexibility to invest in the solar and electric transportation business and ensure timely completion of projects.
The Corporate Finance Group (CFG), which dealt with a loan at Piramal Finance has diversified over time both in terms of sector and in offerings. CFG is now sector agnostic and offers capital across the risk curve including senior debt, acquisition finance, promoter finance and private equity.