Green funding is a milestone for Azure Power project
Japan’s MUFG Bank Ltd has made a delivery and financial close of a US$163 million, five-year syndicated financing for a 300-megawatt solar plant developed by Azure Power India Private Limited (APIP) in Rajasthan.
APIP is a subsidiary of the Azure Power Group, India’s leading independent power producer, developer and operator of solar power plants. The 300MW greenfield project is currently under construction and scheduled for commercial operation in the fourth quarter of 2021 and will sell electricity to the government-owned Solar Energy Corporation of India Limited via a 25-year Power Purchase Agreement.
In a release on 1 July, MUFG said it played a number of key roles in the financing including Mandated Lead Arranger, Sole Green Structuring Advisor, Hedging Bank, Facility Agent and LC Issuing Bank.
The transaction is a milestone for MUFG as it marks the third renewables project financing where it has acted as Green Structuring Advisor and secured certification for a cumulative renewables capacity of 2.6 gigawatts over the past six months.
This underscores MUFG’s proven project financing track record and market-leading ESG capabilities. As the Sole Green Structuring Advisor for the APIP mandate, MUFG facilitated the green loan certification from Climate Bonds Initiative under the Climate Bonds Standards alongside an assurance from KPMG India of the loan’s alignment with the LMA and APLMA Green Loan Principles 2021. #banking #financial #solar #renewables #investment /fiinews.com
