ACME Solar Holdings Ltd, through its subsidiaries, has secured a debt tie-up of Rs 4,725 crore from leading Indian financial institutions to fund the construction of renewable energy projects and optimise its capital structure by lowering financing costs. The financing includes both new project funding and refinancing, with tenors ranging between 18 and 20 years.

Under new greenfield financing, the company raised Rs 2,716 crore from Power Finance Corporation Ltd (PFC) for its 300 MW ACME Sigma FDRE project, which includes renewable generation with four hours of battery storage. In addition, ACME Solar secured its first greenfield project financing from National Bank for Financing Infrastructure Development (NaBFID) amounting to Rs 800 crore for the 150 MW ACME Platinum Solar + Energy Storage System (ESS) project, featuring two hours of battery storage with 50% availability. Both projects have secured connectivity and are at advanced stages of construction.

On the refinancing front, ACME Solar raised Rs 1,209 crore from Yes Bank to refinance its operational 300 MW ACME Sikar Solar project. This refinancing is expected to reduce the cost of debt by around 170 basis points initially, with a further reduction of up to 195 basis points over time. This marks Yes Bank’s first long-term refinancing engagement with ACME Solar.

With this latest round, the company has secured approximately Rs 10,590 crore of greenfield financing in the current financial year, resulting in debt tie-ups for over 90% of its PPA-signed under-construction projects. Additionally, ACME Solar has refinanced nearly Rs 3,380 crore of debt, achieving an average interest rate reduction of about 135 basis points. Further rate reductions of around 60 basis points have been achieved on approximately Rs 4,035 crore of debt across other projects, including two operational assets that have shifted to a fixed-rate regime with existing lenders. These steps align with the company’s long-term funding strategy of maintaining a balanced mix of fixed and floating rate borrowings.

Separately, ACME Solar has expanded its non-fund-based limits during the year with multiple banks, including ICICI Bank, Standard Chartered Bank, First Abu Dhabi Bank, and EXIM Bank. These facilities are expected to support trade finance requirements during the construction phase and help further reduce overall financing costs.