Azure Power Secures $163 Million Investment for 300 MW Solar Project

NYSE listed Azure Power, has secured a USD 163 million investment led by Tokyo-headquartered Mitsubishi UFJ Financial Group (MUFG). This investment is five-year syndicated financing for a 300 MW solar plant to be developed in Rajasthan. With this, Azure follows Adani Green energy in getting MUFG on board.

MUFG is the third renewables project financing as it acted as a Green Structuring Advisor and secured certification for the capacity of a cumulative renewable of 2.6 GW over the prior six months.

MUFG was among those 12 international banks that committed USD 1.35 billion for debt funding for Adani’s renewable portfolio too.The fund will initially finance the 1.69 GW hybrid portfolio of solar and wind projects to be set up through Adani’s four special purpose vehicles in the Indian state of Rajasthan.

Earlier in April this year, Radiance Renewables had announced an agreement to acquire the solar rooftop assets of Azure Power for Rs. 536.5 crores covering 152.5 MW including 8.1 MW of under construction and 18.5 MW of recently commissioned assets. Radiance is a 100% subsidiary of the Green Growth Equity Fund (“GGEF”), India’s leading Climate fund, managed by EverSource Capital.

The acquisition made it one of the largest such deals in the rooftop solar assets space in India.

In February 2021, Azure Power announced its consolidated results for fiscal Q3 of 2021, reporting a net loss for the quarter of Rs 108.8 crore. The firm highlighted that its operating MWs were 1,987 MWs, as of December 31, 2020, an increase of 10 percent over December 31, 2019. Operating and committed megawatts were 7,115 MWs, as of December 31, 2020, an increase of 34.2 percent YoY. And committed megawatts include 4,000 MWs for which the firm states that it has received Letters of Award (LOA) but the Power Purchase Agreements (PPAs) have not yet been signed.