Debt

Debt financing

Aditya Birla Group in talks with domestic lenders to raise Rs.14,000-Cr for Sprng Energy acquisition

Economic Times  

Aditya Birla Group is in talks with domestic lenders to raise approximately INR.14,000 crore through a long-term loan syndication. The financing is intended to fund the company’s acquisition of renewable energy platform Sprng Energy. Axis Bank has reportedly underwritten the entire amount, with plans to retain a significant portion, while State Bank of India and HDFC Bank are currently evaluating commitments for the remaining balance.Sprng Energy holds a contracted portfolio of approximately 5 GWp capacity, comprising 3.3 GWp of operational capacity and 1.7 GWp of under-construction projects, alongside a development pipeline. The acquisition will be financed through a mix of debt and equity infusion from Grasim and funds managed by Global Infrastructure Partners, a part of Blackrock.The proposed debt facility is being structured as a domestic syndication or club loan secured against the renewable power assets of Sprng Energy. The financing could have a tenor of up to 20 years, with interest rates at approximately 7.7%. The enterprise value of the transaction is INR.17,200 crore.