Radiance Renewables Achieves Milestone: Secures Green Loan for Maharashtra Solar Project

This Green Loan Project Finance Facility will help fund the 150 MW (AC) solar project in Maharashtra. Through a subsidiary, Radiance Renewables has inked an Energy Supply Agreement with a prominent Global Data Center company operating in the state, ensuring the supply of solar energy to their data centers for the next 25 years. This initiative will unfold in two phases, with the initial 50 MW (AC) phase nearing completion.

Outlook Business Desk

Updated on: 2 November 2023 5:41 pm

Radiance Renewables Pvt. Ltd., supported by EverSource Capital, has achieved a significant milestone in India's renewable energy sector. The company successfully secured a Green Loan Project Finance Facility for its 150 MW (AC) greenfield Commercial & Industrial (C&I) solar power project in Maharashtra, marking its emergence as a leading C&I renewable energy player in the country.

Manikkan Sangameswaran, Executive Director of Radiance Renewables, expressed satisfaction over the successful financial closure of the ongoing C&I projects. This accomplishment speaks to the company's methodical approach, strong emphasis on Environmental, Social, and Governance (ESG) principles, and implementation capabilities. With a portfolio comprising over 15 lenders, the company remains committed to regulatory compliance, adherence to global ESG principles, and ensuring robust execution.

The funding obtained will drive the 150 MW (AC) solar project in Maharashtra. Through a subsidiary, Radiance Renewables has inked an Energy Supply Agreement with a prominent Global Data Center company operating in the state, ensuring the supply of solar energy to their data centers for the next 25 years. This initiative will unfold in two phases, with the initial 50 MW (AC) phase nearing completion. Definitive agreements for both phases have led to the achieved financial closure, marking one of the largest single-ticket transactions in the C&I segment.

With an existing operational capacity of nearly 500 MWp, Radiance Renewables aims to increase its capacity to 2 GWp within the next three years, signifying its commitment to growth and innovation in the industry.

The Green Loan Project Finance Facility, valued at around $90 million, was a collaborative effort between Axis Bank Limited and Standard Chartered Bank. These financial institutions ensured compliance with stringent sustainability frameworks, including the Loan Market Association's Green Loan Principles, IFC Performance Standards, and Equator Principles. Standard Chartered Bank acted as the exclusive green loan coordinator, while Axis Bank Limited served as the Escrow Bank. Catalyst Trusteeship Services Limited took on the roles of the Facility Agent and Security Trustee.