AIIB mulls over Indian solar project financing
Ayana Ananthapuramu Solar - a project vehicle comprising Green Growth Equity Fund (25.5%); National Investment and Infrastructure Fund (25.5%) and CDC Group (49%) - is out to banks for its $152 million 250MW solar energy project in southern India.
The project, located in Andhra Pradesh, is backed by a 25-year PPA signed with National Thermal Power Corporation in July 2018 (NTPC) at a tariff of Rs2.73 per kWh ($0.037/kWh). NTPC has also signed a 25-year power sale agreement with distribution companies in Andhra Pradesh to sell the electricity generated by the solar park, which is part of NTPC’s 750MW Ananthapuramu solar park.
The Asian Infrastructure Investment Bank (AIIB) is assessing whether to put up a $50 million loan to the project and aims to approve it by Q3 2020. Financed on a debt-to-equity ratio of 75/25, the $113.6 million debt package is expected to be provided by AIIB ($50 million ticket) and State Bank of India $(63.6 million). Ayana Renewable Power (ARPPL), the project sponsor, will provide $38 million in equity.
