NEW DELHI : Serentica Renewables, a renewable energy firm promoted by Sterlite Energy, is planning to boost ₹5,000 crore debt from a clutch of home lenders, two individuals conscious of the event mentioned. The corporate will use the cash to construct hybrid photo voltaic and wind energy initiatives in Karnataka, Rajasthan and Maharashtra, with commissioning anticipated to begin in 2024-25.
This quantity will likely be over and above the ₹5,600 crore that Serentica Renewables raised from Rural Electrification Corp. (REC) and Energy Finance Corp. (PFC) not too long ago, the individuals cited above mentioned on situation of anonymity.
Serentica initially deliberate an exterior industrial borrowing (ECB) to boost the capital. Nevertheless, the corporate has been dealing with challenges in elevating the international debt on account of issues over its hyperlinks to Anil Agarwal-led Vedanta Sources Plc.
Serentica Renewables is owned by Twin Star Holdings, a holding firm that additionally owns stakes in London-based Vedanta Sources and Sterlite Energy. The corporate is headed by Pratik Agrawal, who can be the managing director of Sterlite Energy, which in flip is a Vedanta Group firm.
“Within the present situation, there’s a sturdy demand for renewable energy belongings, and Serentica has plans to ramp up its capability additional,” one of many two individuals cited above mentioned. “A clutch of home banks, together with a number one non-public lender, are anticipated to be a part of the consortium of lenders offering the financing,” the individual mentioned.
“Serentica is working in the direction of monetary closure of its deliberate 4GW of renewable installations. In step with our authentic fundraising technique, the monetary closures are being run with a various set of home and worldwide monetary lenders that are on monitor. Nevertheless, we can’t touch upon any particular transaction or lender,” an organization spokesperson mentioned.
US-based non-public fairness KKR Investments is an investor in Serentica. In Might, KKR invested $400 million within the firm.
The event assumes significance because the Vedanta Group has been dealing with challenges on account of mounting debt and an absence of refinancing choices. In the previous couple of months, score businesses have downgraded the debt of a number of Vedanta Group firms. There are issues over Vedanta Sources’ capability to repay bond repayments of $3.1 billion arising in 2024-25, resulting in a downgrade by the worldwide rankings company. Final week, India Score and Analysis downgraded the debt score of Vedanta Ltd to IND AA- from IND AA and positioned it on score watch with adverse implications.
Vedanta Group chairman Anil Agarwal not too long ago mentioned in an interview that he has seen greater issues previously and is assured that he’ll overcome them.
“Serentica has shut enterprise connections with Vedanta Group, and therefore the issues unwinding within the group led to some reluctance in international lenders for ECB issuance. However domestically, the debt markets are wanting buoyant, and there may be vital curiosity in sectors like sustainable and renewable vitality, which augurs effectively for Serentica,” mentioned the second individual cited above. In September, Serentica raised ₹3,000 crore from REC and ₹2,600 crore from PFC.
“With the funding secured, we will likely be accelerating the event of our first section of initiatives, which can deliver clear vitality to hard-to-abate energy-intensive industrial customers and assist them transfer in the direction of a net-zero future.” Pratik Agarwal, director of Serentica, mentioned in a press release on 25 September.
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Up to date: 19 Oct 2023, 12:03 AM IST
Supply: Live Mint