Herbert Smith Freehills' India project finance team advises MLAs on green loan project financing for ReNew's 600MW solar power project

Herbert Smith Freehills has advised mandated lead arrangers Societe Generale, Sumitomo Mitsui Banking Corporation, BNP Paribas, Crédit Agricole Corporate and Investment Bank, and MUFG Bank, Ltd. on their JPY equivalent ~INR20,000,000,000 ECB project financing of the development, construction and operation of ReNew Hans Urja Private Limited's 600MW (AC) solar power project in the State of Rajasthan, India. 

The project reached financial close on 23 May 2024.

The project financing facility is structured in compliance with the February 2023 "Green Loan Principles" issued by LMA, APLMA and LSTA, and is uniquely tied with an Indian rupee letter of credit facility (provided by local branches of the MLAs). 

The borrower is using the letter of credit facility to finance the procurement of modules and other equipment required for the construction of the project. Power produced by the project will be purchased by the Solar Energy Corporation of India Limited under two long-term power purchase agreements. 

The Herbert Smith Freehills team was led by partners Rupert Baker in Singapore and Dhananjaya Chak in London, with assistance from senior associates Nishtha Gupta and Arnica Mullins and paralegal Pallavi Goswami. 

"It's been a pleasure to assist the MLAs on the financing of another ReNew-developed solar project in India as the ECB market continues to open up," said Rupert. "This transaction was complex for a number of reasons, including being the first project using 100% ReNew's own solar modules to be financed in the international debt market to reach financial close."

"We are delighted to have successfully delivered this significant financing for ReNew Power’s international lenders," said Dhananjaya, who leads the firm's India Finance team. 

"We look forward to growing our relationship with the lender group and ReNew Power, particularly given ReNew’s status as a 10GW-plus player in the Indian renewables sector and its upcoming pipeline of projects."

Societe Generale acted as Structuring Bank, Sumitomo Mitsui Banking Corporation was Documentation Bank and both acted as Co-ordinating Banks.

Sumitomo Mitsui Banking Corporation and MUFG Bank, Ltd. acted as Green Loan Co-ordinators and MUFG Bank, Ltd. acted as Agent.

Cyril Amarchand Mangaldas acted as Indian counsel to the MLAs.