NOPL Solar Projects, a fully owned subsidiary of Vikran Engineering (VEL), has signed a facility agreement with the Indian Renewable Energy Development Agency (IREDA) for a rupee term loan of up to $307.2m (Rs29.41bn).
The funds will be directed towards partial financing of a large-scale solar photovoltaic (PV) power project with a capacity of 969MW-alternating current (MWac)/1.16GW-peak (GWp).
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The project is being developed under the state government’s Mukhyamantri Saur Krishi Vahini Yojana 2.0 initiative and will be spread across 152 sites in Maharashtra, India.
The solar project, which has an estimated total cost of Rs42.01bn, is part of ongoing renewable energy investments in the region.
The balance of the project cost is expected to be met through promoter contributions and other sources as outlined in the project’s financial plan.
An engineering, procurement and construction contract valued at Rs35.17bn was previously awarded to the parent company by its subsidiary for implementation of the solar installations.
The terms of the agreement with IREDA cover financial covenants, loan drawdown, potential events of default, repayment, representations and warranties, and security requirements.
Under the terms of the facility agreement between NOPL and IREDA, VEL has no direct liability, according to the company’s regulatory filing.
VEL is expected to provide a corporate guarantee in favour of IREDA, which will be executed under a separate instrument. Any obligations for the listed entity will arise only once it is formally completed.
IREDA has no right to appoint directors to VEL’s board, and the facility agreement does not change the listed company’s management or control structure.
