Avaada in talks with Standard Chartered, SMBC & other banks to raise $700 mn for SJVN solar-wind hybrid project

Group 1 - Avaada Group is in advanced talks to raise $700 million (Rs 6,500 crore) in a 20-year project finance deal for its solar-wind hybrid project awarded by Sutlej Jal Vikas Nigam (SJVN) [8] - The loan terms are being finalized, including a likely put option at the end of five years to provide a repayment window for the borrower [1][8] - The project involves a power purchase agreement (PPA) with SJVN, and the loan structure is still being worked out [2][8] Group 2 - Last year, SJVN awarded Avaada contracts for large-scale solar-wind hybrid projects totaling 1410 MW, including an 820 MW hybrid project and a 590 MW interstate transmission system connected renewable projects, both with 25-year PPAs [5][8] - In 2023, Avaada secured a 300 MW project from Solar Energy Corporation of India (SECI), with financing finalized at the end of December, where MUFG and SMBC provided Rs 1,150 crore each at an interest rate of 8.40% per annum for a five-year loan [6][8] Group 3 - ICRA reported that Avaada's significant capacity expansion plans expose it to execution and stabilization risks, leading to a leveraged capital structure due to ongoing debt-funded expansion [7][9] - The company's ability to maintain adequate liquidity and service debt obligations will be a key credit monitorable, with successful execution and stabilization of expanded capacity critical for supporting cash flows [9]