Azure Power refinances 600 MW solar project at lowest interest rate

Azure Power has announced that it refinanced its 600 MW solar power project at the lowest interest rate in its portfolio to date. The solar-powered company has successfully refinanced its current project finance facility of Rs 2,350 crore used towards construction of its largest project - 600 MW Interstate Transmission System-connected solar project executed by Azure Power Forty Three Pvt Ltd. In December 2021, the project was fully authorised. The refinancing was completed at an interest rate of 7.2% per annum, fixed for 42 months. The lowest interest rate for any project finance facility in terms of rupee financing for the firm's existing portfolio so far. Pawan Kumar Agrawal, Chief Financial Officer, Azure Power, told the media that refinancing was one of their key priorities, even before the commissioning of the project in December 2021. The facility would result in substantial savings in interest cost and also improve the project Internal Rate of Return (IRR). He said that they are overwhelmed with the credit market's response, which shows the confidence of lenders in their powerful corporate governance standards, operational abilities, and credit fundamentals. L&T Finance Limited served as the underwriter for this refinancing facility. Azure sells power to government utilities and individual industrial and commercial customers across the country. Image Source Also read: Azure Power commissions 600 MW solar project in Rajasthan