Azure Power

Azure Power Sells Non-core Rooftop Solar Portfolio For ₹5.36 Billion

Azure Power Global has announced that it had signed a binding agreement to sell its non-core rooftop solar portfolio to Radiance Renewables for ₹5.36 billion (~$73.5 million).

A 100% subsidiary of the Green Growth Equity Fund (GGEF), India’s leading Climate fund managed by EverSource Capital, Radiance offers competitive renewable energy solutions for commercial, industrial, and residential customers.

The acquisition will cover 152.5 MW of assets and includes 8.1 MW of assets under construction and 18.5 MW of recently commissioned assets.

In a separate release, Azure said that its Green Bond owners’ rights had been protected in respect of 42.7 MW of assets.

As part of the sale agreement, 48.6% of the equity ownership relating to 42.7 MW of assets will be transferred to Radiance, and the remaining 51.4% will be transferred after the refinancing of Azure Power’s Green Bonds.
Azure Power

All the cash flows related to the 42.7 MW of assets will remain in the SPV (Special Purpose Vehicle) to service debt. They cannot be upstreamed until such refinancing, and the remaining 51.4% equity ownership is transferred to Radiance.

The rooftop solar portfolio generated ₹331 million (~$4.5 million) in EBITDA (earnings before interest, taxes, depreciation, and amortization) for the 12 months ending December 30, 2020.

Reference- PRNewswire, Mercom India, The Hindu, Money Control