The recently approved credit facility will support Greenko to repay two sets of dollar debts due next year.
Greenko, the domestic renewable energy firm, recently secured a 62 billion rupees ($743 million) credit facility from India’s National Bank for Financing Infrastructure and Development (NaBFID) to help refinance some of its offshore debt.
According to the reports by the Business Standard, the company, supported by Singapore’s GIC sovereign wealth fund, plans to use NaBFID’s loan to repay two sets of dollar bonds due in January and July 2025 in instalments.
Sources have revealed that NaBFID plans to use the funds for ongoing projects of Greenko across India under its mandate. The loans utilise a unique structure where all 25 subsidiaries in the group will support each other during liquidity issues despite maintaining separate balance sheets.
Greenko aims to cut costly dollar debt in favour of cheaper local currency loans. The loan rates are tied to the NaBFID Lending Rate and have various maturities of up to 23 years.
As reports say, the company requires substantial funding for its pumped hydro storage projects, including $1.25 billion in restricted group bonds due in the first half of next year and potential refinancing of nearly $1 billion debt at Sikkim Urja.
However, neither NaBFID nor Greenko has made any official announcement regarding the matter.
Greenko Group currently has a net installed capacity of 7.5 gigawatts in 15 states. It operates almost 100 renewable projects across India, most through a special purpose vehicle (SPVS).
