Indian solar developer ReNew Power has secured $390 million in financing from the Asian Development Bank to develop a 709MW renewables portfolio in India.
The package comprises funds from the ADB’s own account and from Leading Asia’s Private Sector Infrastructure Fund, a $1.5 billion joint vehicle between the ADB and the Japan International Cooperation Agency. This is the first deal made by the vehicle, which was set up in March and targets core assets in ADB’s borrowing member countries through equity and debt investments.
ReNew Power will use the money to develop 398MW worth of solar farms in Jharkhand and Telangana and a 311MW portfolio of wind projects in Andhra Pradesh, Gujarat, Karnataka and Madhya Pradesh. The renewables plants, expected to be commissioned by December this year, will supply their outputs to their respective state power distribution companies under long-term power purchase agreements.
ReNew Power has over 3GW of commissioned and under-construction clean energy projects across 15 states in India, according to the ADB.
In October 2015, the independent power producer raised $265 million of fresh equity from new and existing investors, including sovereign wealth fund Abu Dhabi Investment Authority, US-based alternative asset manager Global Environment Fund and investment bank Goldman Sachs.
Last March, the company received $250 million in debt financing from the US’ Overseas Private Investment Corporation to build a portfolio of 400MW solar projects in India.