Avaada Energy secures $143 million SBI loan for solar project in Gujarat

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Avaada Energy, the renewable energy arm of Avaada Group, announced this week that it has secured green financing of about INR 1,190 crore ($143 million) from India’s largest public sector lender, the State Bank of India (SBI). It raised the financing from SBI as a 20-year project loan facility at competitive terms.

Avaada will use this financing to support the development of its 400 MWp utility-scale solar PV power project in the Surendra Nagar district of Gujarat. The entire power generated from the project will be procured by Gujarat Urja Vikas Nigam Ltd (GUVNL), the state-owned body engaged in the bulk purchase and sale of electricity in Gujarat.

“This landmark transaction marks Avaada’s first endeavour in developing a greenfield project under an existing Special Purpose Vehicle (SPV) that already possesses an operational project. This strategic arrangement will enable the organization to optimize its capital structure and simplify the ownership structure of its project subsidiaries, demonstrating Avaada’s approach to managing and expanding its renewable asset base,” stated Avaada.

Avaada Group is engaged in renewable energy generation, solar PV manufacturing, development of green fuels including green ammonia, green methanol and sustainable aviation fuel, and providing energy storage solutions. Avaada Energy, its renewable power generation arm, aims to achieve 11 GWp capacity by 2026. Avaada has attracted significant international investments, including a fund commitment of $1.3 billion in 2023, with a $1 billion commitment from Brookfield’s Energy Transition Fund, and $300 million from GPSC, PTT Group of Thailand.

 

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