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Azure Power Explores Funding Options to Fuel Green Energy Expansion Amid Challenges

The company is also approaching existing investors such as Canada's CDPQ and OMERS and selling minority stakes in ongoing projects, and securing bank debt.

September 22, 2023. By News Bureau

Solar-focused renewable energy company Azure Power Global is actively seeking to raise approximately INR 5,800 crore (USD 700 million) to finance its ambitious capacity expansion plans.

The company is also approaching existing investors such as Canada's CDPQ and OMERS and selling minority stakes in ongoing projects, and securing bank debt.

A spokesperson for Azure Power stated, "To successfully execute our upcoming projects, which include 700 MW of solar, 120 MW of wind, and a 150 MW hybrid project, we require USD 700 million. To strike a balance and manage leverage, we are exploring various funding sources, which may involve both equity and debt components."

Azure Power's extensive portfolio currently stands at 7.2 GWs, with 2.9 GWs already in operation and an additional 4.3 GWs contracted or awarded. CDPQ owns a majority 53.4% stake in the company, while OMERS holds 21.4%, with the remaining shares held publicly.

Despite recent challenges, including concerns about defaults and delisting, Azure Power remains committed to its expansion plans and continues to work closely with financial institutions to secure the necessary funding for its projects.

Moody's recent downgrade of Azure Power Energy's debt underscores the importance of these efforts to ensure the company's financial stability and growth.

Tags:

Green Energy Expansion

Bank debt