Power Finance Corporation Offers Loans of Over ₹1 Billion to Solar Project Developer
A part of the fund will be used for the setting up a 20 MW solar project in Bharuch
KPI Global Infrastructure Limited, a subsidiary of the KP Group, announced that it had received financial assistance for 15 MW of existing and 20 MW of proposed solar power projects from Power Finance Corporation Limited (PFC).
According to its BSE filing, KPI Global has received an approval letter of ₹315 million (~$4.22 million) toward refinancing of the existing 15 MW of solar power projects, which has earlier been financed by the State Bank of India. The company has also received financial assistance of ₹760 million (~$10.18 million) toward setting up a 20 MW solar power project at Bharuch in Gujarat. The total loan secured amounts to ₹1.07 billion (~$14.3 million).
Incorporated in 2008, Gujarat-based KPI Global is a solar developer with over 15 MW of solar projects commissioned in India.
Previously, it was also reported that KPI Global had announced the acquisition of KPIG Energia Private Limited, a newly-formed special purpose vehicle registered on May 21, 2019. The acquisition was executed at face value of its shares at ₹10 (~0.14). The total cost of acquisition was ₹0.1 million (~$1,443) divided into 10,000 equity shares.
In March this year, KPI Global announced that it had signed a power purchase agreement with Songwon Specialty Chemicals India Private Limited for the sale of 1 MW of solar power for 15 years.
The company earlier announced that it had added 7.5 MW to its existing solar power project located in Amod taluka of Gujarat’s Bharuch district. The additional capacity was commissioned on for the company’s industrial customers UPL Limited, Vapi, and Colourtex Industries.
According to Mercom Capital Group’s 1H and Q2 2020 Solar Funding and M&A Report, total corporate funding globally – including venture capital (VC) funding, public market, and debt financing – dipped 25% to $4.5 billion (~₹336.09 billion) in the first half of 2020 from $6 billion (~₹448.13 billion) in the same period last year.
Per the report, announced debt financing activity globally in the first half of 2020 ($3.6 billion in 15 deals) was 16% lower compared to the first half of 2019 when $4.2 billion was raised in 27 deals. Debt funding in Indian in the first half came to $450 million, a 66% fall compared to $1.3 billion raised in 1H 2019.