Debt

Debt financing

Renewable energy player Avaada to raise Rs.3,515-Cr via NCDs, $398-M via ECB for debt refinancing

Economic Times   Avaada Ventures  

Mumbai-based Avaada Ventures , the holding company of the renewable energy group Avaada, plans to raise INR.3,515-Cr through rupee-denominated non-convertible debentures (NCD) and USD 398-M via an external commercial borrowing (ECB). The proposed debt is intended to refinance existing liabilities.The company plans to use the new funds to settle an USD 685-M investment from Brookfield and retire USD 80-M in outstanding commercial paper at its subsidiary, AVPL.The NCD issuance, which is scheduled to open and close on September 17, comprises two components: INR.3,240-Cr in Series A debentures and INR 275-Cr in Series B debentures, both carrying a fixed coupon of 11.75% with a three-year tenor.The ECB facility is proposed as a senior and secured debt instrument and may be raised from Barclays Bank and DBS Bank.Previously, Avaada obtained shareholder approval to issue INR 4,600-Cr in NCDs and is required to complete a monetization event within 18 months of executing the debenture trust deed.

In Apr 2023, Avaada Ventures had attracted about $ 1,000 M from Brookfield.For FY25, Avaada Ventures had reported about INR 260 Cr in Operating Income and about INR 2,163 Cr in PAT.