Piramal Enterprises is shifting its key focus to non-conventional energy, billed as the most promising sector in a power-starved country, with its subsidiary Piramal Finance extending a Rs 700 crore credit line to Acme Solar Holdings.
The company said the following,
“The deal was made through Corporate Finance Group (CFG) of Piramal Finance by introducing a new product - a Flexi Line of Credit - for the renewable energy sector. This aims to make a line of funding available to the borrower based on operational projects, with the flexibility to draw or repay during the tenure.”
CFG has been one of the early movers within the renewable energy space. It has diversified over time both in terms of sector and in offerings. CFG is now sector agnostic and offers capital in the form of senior debt, acquisition finance, promoter finance, private equity exits alongside its previous focus on mezzanine investments.
With presence in 14 states, ACME is one of the largest Independent Power Producers (IPP) in solar energy space in the country with a portfolio of over 1.8 GW. The current operational capacity by July end is over 1 GW, reaching 1.4 GW by September end and company is present across the 14 states.
Earlier last year, Pirmal had first invested around Rs 500 crore in ACME together with its partner APG. ACME has a strong track record of execution, with projects spread across the country, which reduces the off-take risk, and has signed PPAs for the complete portfolio.