Yes Bank, PFC, NaBFID back ACME Solar with Rs 4,725 crore financing; stock in focus

Shares of ACME Solar Holdings are likely to remain in focus on Thursday after the renewable energy player announced a financial development, securing a debt tie-up of Rs 4,725 crore from leading domestic financial institutions.

The fresh capital will be utilised to fund the construction of renewable energy projects and optimise the company's capital structure by paring down financing costs. On Wednesday, ACME Solar shares closed 2.13 per cent higher at Rs 234.80 on the BSE, against the previous close of Rs 229.90.

In a regulatory filing, the company disclosed that the capital raise involves financing and refinancing with a "tenor ranging from 18 to 20 years". The breakdown of the Rs 4,725 crore facility highlights a mix of greenfield project funding and strategic refinancing.

Under the new greenfield financings, ACME Solar secured Rs 2,716 crore from Power Finance Corporation Ltd (PFC Ltd) for its 300 MW ACME Sigma FDRE project, which features four hours of battery storage. Additionally, the company marked its first greenfield project financing from the National Bank for Financing Infrastructure Development (NaBFID), securing Rs 800 crore for the 150 MW ACME Platinum Solar + ESS project. The firm noted that "both these projects have connectivity in place and are in advance stages of construction," it said.

On the refinancing front, the company secured Rs 1,209 crore from Yes Bank for its operational 300 MW ACME Sikar Solar project. This marks the first long-term refinancing arrangement between Yes Bank and ACME Solar. The move is expected to significantly lower debt costs, enabling reduction in cost of debt initially by 170 bps and eventually by 195 bps.

With this latest round, ACME Solar has secured approximately Rs 10,590 crore in greenfield financing during the current financial year. Consequently, the company has achieved an overall debt tie-up for more than 90 per cent of its under-construction projects that have signed Power Purchase Agreements (PPAs).

Furthermore, the company has refinanced debt worth nearly Rs 3,380 crore this year, achieving a rate reduction of approximately 135 bps on the refinanced portion. It also reported an additional rate reduction of roughly 60 bps on Rs 4,035 crore of debt for other projects.

Beyond fund-based limits, ACME Solar has expanded its non-fund based limits with multiple banking partners, including ICICI Bank, Standard Chartered Bank, First Abu Dhabi Bank, and EXIM Bank. The company stated that these limits assist in reducing cost of debt through trade finance during construction stage of project.

ACME Solar currently holds a total renewable portfolio of 7,520 MW, comprising an operational capacity of 2,942 MW and an under-construction capacity of 4,578 MW