Mumbai, July 15 -- Brookfield-backed Avaada Group is seeking US$750 million (US$750 mn) from a group of global lenders to refinance part of its debt, people familiar with the matter said. The chairman, Vineet Mittal, is pursuing the facility through a corporate entity and has mandated at least two banks, including Barclays Plc and DBS Bank, to underwrite the package. The proceeds are intended to repay a US$1 billion (US$1 bn) credit facility that Brookfield issued in 2023 to Avaada Ventures Private Limited.
The financing is expected to be split between an offshore loan and a rupee-denominated bond and is likely to have a tenor of about three years, although the structure and terms remain subject to finalisation. Other global lenders, such as Standard Chartered, Nomura and JPMorgan Chase, are in discussions to join the lender group. Sources indicated the dollar tranche would be priced over the secured overnight financing rate and that some lenders may down-sell portions to other investors.
Avaada Group, which includes Avaada Energy, is described as one of India's fastest growing renewable energy developers with a portfolio spanning solar, wind and hybrid power projects. The group is also considering a Mumbai initial public offering for its solar cell unit, Avaada Electro. In 2023 the company raised US$1.07 billion (US$1.07 bn) to fund green hydrogen and ammonia ventures and Brookfield Renewable agreed to invest up to US$1 billion (US$1 bn) in Avaada Ventures.
The proposed package, if completed, would be taken as a sign of continued investor confidence in India's clean energy sector as the government seeks to lift non-fossil fuel capacity to 60 per cent by 2035 and to install 500 gigawatts of non-fossil capacity by 2030. Market participants noted these policy targets are driving significant capital flows into renewables. Banks involved did not immediately provide comment when approached.
Published by HT Digital Content Services with permission from Construction World.