Inox Wind Enters Consortium Agreement with Banks for INR 2,200 Crore Financing

Inox Wind Limited (IWL), India’s wind energy solutions provider, announced that it has signed a consortium agreement with a group of banks led by ICICI Bank for limits of INR 2,200 crores. This limit is likely to be enhanced further to INR 2,400 crores as per the working capital assessment done by the lead bank (ICICI Bank).

The limits extended are largely non-fund based [bank guarantees (BGs) and letter of credits (LCs)]. The limits have been sanctioned on the financial strength of IWL’s balance sheet and without the requirement of any corporate guarantees or any other support from Gujarat Fluorochemicals Ltd. (GFL).

IWL’s recent fund raises as well as its operational ramp up have led to its balance sheet becoming net cash positive. With this arrangement in place, any prior corporate guarantee or any other such support extended to IWL by GFL stands vacated / to be vacated in the near future.

Commenting on the occasion, Akhil Jindal, Group CFO, INOXGFL Group, said, "The consortium arrangement reposes the confidence of the banking community in IWL’s financial strength. This is the culmination of the last several quarters of efforts and is backed by the strong operational performance by the company and its robust outlook. We thank all our banking partners who have been supportive throughout our journey largely on account of IWL honouring all its commitments without causing any loss to the banks and financial institutions.”