ACME Solar Holdings has finalized a Rs. 1,072 crore domestic project finance arrangement for its subsidiary, ACME Aklera Power Technology Pvt Ltd, to refinance debt associated with its 250 MW operational solar project in Rajasthan. The initiative aims to reduce borrowing costs by 95 basis points, lowering the interest rate to 8.5% per annum over an 18-year tenure. With a robust operational record and an annual Capacity Utilisation Factor (CUF) of 29.3% in FY25, the project showcases stability and performance. This refinancing is part of ACME's broader capital optimization strategy, including Rs. 4,575 crore in similar transactions in the past six months.
Strategic Refinancing for Long-Term Cost Efficiency
ACME Solar Holdings, one of India’s prominent renewable energy players, has announced a major refinancing milestone for its Rajasthan-based project. The company has secured Rs. 1,072 crore in domestic project finance for its wholly owned subsidiary, ACME Aklera Power Technology Pvt Ltd. The primary objective of this move is to refinance the existing debt and improve the cost structure of the 250 MW operational solar power plant.
The new financial arrangement carries a significantly reduced interest rate of 8.5% per annum—down by 95 basis points—and is structured over an 18-year repayment period. This strategic financial restructuring not only brings down borrowing costs but also enhances long-term financial sustainability for the group.
Operational Strength and Performance Metrics
The Rajasthan project, commissioned over 18 months ago, has demonstrated consistent performance. For the fiscal year 2024–25, it recorded a Capacity Utilisation Factor (CUF) of 29.3%, which reflects the efficiency and reliability of its power generation capability. This performance provides a solid foundation for lenders’ confidence and justifies the refinancing terms obtained.
The plant contributes to India’s growing solar capacity and aligns with national renewable energy targets while ensuring stable cash flows for the company.
Consortium-Led Financing and Diversified Lending Partners
The refinancing package was secured through a consortium of leading financial institutions, including Bank of America and Standard Chartered Bank. This collaboration underscores the growing interest of global financial players in India’s renewable infrastructure, especially operational assets with proven performance.
By engaging a consortium rather than relying on a single lender, ACME diversifies its financial exposure and enhances its resilience to market fluctuations in the cost of capital.
Part of a Larger Capital Optimization Strategy
This transaction is a continuation of ACME’s broader effort to optimize its capital structure. Over the past six months, the company has successfully refinanced debt worth Rs. 4,575 crore across various projects. These strategic moves are designed to reduce the overall cost of capital, improve credit ratings, and position the company for future expansions or public market participation.
Rajat Kumar Singh, Group CFO of ACME Solar Holdings, emphasized the importance of the initiative, stating that the refinancing initiative aligns with the company’s long-term goal of building a more efficient and diversified capital base.
Looking Ahead: Scaling with Financial Discipline
With India ramping up its clean energy commitments and global investors seeking stable returns from infrastructure assets, ACME’s refinancing strategy places it in an advantageous position. By securing favorable terms for mature assets, the company frees up capital for new developments and improves its financial flexibility.
This development not only strengthens ACME’s individual project economics but also reflects positively on the broader Indian solar sector, which continues to mature and attract global institutional capital.
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