Aditya Birla Renewables is seeking $1.5 bn in rupee-denominated loans to finance its acquisition of Solenergi Power, Shell’s Indian renewable energy business, according to three bankers familiar with the discussions. The financing would allow the company to avoid relying on a more expensive bridge facility.

Aditya Birla Group’s renewable-energy arm agreed in July to acquire Solenergi Power for $1.8 bn. The Shell unit includes the Sprng Energy group companies, which operate renewable-energy projects in India.

The company had earlier secured a $1.6 bn bridge loan commitment from MUFG Bank for the transaction. Bridge financing is generally interim funding and carries a higher cost, while longer-term project finance is supported by assets and can reduce funding expenses.

The proposed rupee loans are expected to have a tenor equivalent to about 80 per cent of the projects’ lifecycles. The financing is likely to be divided among 17 to 20 special purpose vehicles holding individual projects, including operational assets and projects that are still under construction.

The transaction has not yet closed, so Aditya Birla Renewables is not immediately required to make payment to Shell. The company has approached multiple Indian banks, including State Bank of India and HDFC Bank, for the loans, the bankers said. MUFG, State Bank of India and HDFC Bank did not respond to requests for comment, while a spokesperson for Aditya Birla Renewables did not respond to emailed queries.