Avaada Group, one of India's largest clean-energy companies with solar, wind and hybrid power projects, is moving to refinance part of its existing debt as founder and chairman Vineet Mittal seeks about $750 million from a group of global lenders. The financing is being pursued through an entity, with at least two banks, including Barclays and DBS Bank, mandated to underwrite the deal, according to people familiar with the matter.
The proceeds are expected to repay a $1 billion credit facility issued by Brookfield in 2023 to Avaada Ventures. The new package may be divided between an offshore loan and a rupee-denominated bond, with a tenor of about three years, while Standard Chartered, Nomura and JPMorgan Chase NYSE:JPM are also in discussions to join the lender group. The dollar loan portion is expected to be priced over the secured overnight financing rate, and some lenders may eventually down-sell the exposure to other investors.
Investors may view the refinancing as another sign of global capital interest in India's renewable-energy market, where the government is targeting 500 gigawatts of non-fossil fuel capacity by 2030 and net-zero emissions by 2070. Avaada Group, which includes Avaada Energy, previously raised $1.07 billion in 2023 to support green hydrogen and ammonia ventures, while Brookfield Renewable planned to invest up to $1 billion in Avaada Ventures. The company is also considering a Mumbai initial public offering for Avaada Electro, its solar cell unit, which could add another capital-market angle to the group's growth story.