BluPine Energy Secures ₹5,400 Crore Long-Tenor Loan Underwritten by Axis Bank
BluPine Energy, backed by London-based private equity firm Actis, has secured a ₹5,400 crore long-tenor loan from Axis Bank at 7.70% interest rate with 16-20 year tenor. The facility is secured against 17 renewable energy SPVs with 1,426 MW operating capacity and 26 MW under construction. Proceeds will refinance existing borrowings, optimizing capital structure for the renewable energy platform.
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BluPine Energy, a renewable energy platform backed by London-headquartered private equity firm Actis, has successfully secured a substantial ₹5,400 crore long-tenor loan facility underwritten by Axis Bank. This significant financing arrangement demonstrates strong institutional confidence in India's renewable energy sector and BluPine's operational capabilities.
Loan Structure and Terms
The financing facility comes with attractive terms structured for long-term renewable energy operations. Key parameters of the loan arrangement include:
| Parameter: | Details |
|---|---|
| Loan Amount: | ₹5,400 crores |
| Interest Rate: | Approximately 7.70% |
| Tenor: | 16-20 years |
| Underwriter: | Axis Bank |
| Security: | 17 renewable energy SPVs |
The loan is secured against BluPine Energy's comprehensive portfolio of 17 renewable energy special purpose vehicles (SPVs), providing lenders with recourse to operating solar and wind assets. These assets benefit from the security of long-term power purchase agreements, ensuring predictable cash flows for debt servicing.
Asset Portfolio and Capacity
BluPine Energy operates a substantial renewable energy portfolio with significant scale and growth potential. The company's current asset base includes notable SPVs such as Solarcraft Power India 3, Solarcraft Cleantech, and Solarcraft TN1, among others.
| Capacity Metric: | Details |
|---|---|
| Operating Capacity: | 1,426 megawatt-peak |
| Under Construction: | 26 MW |
| Total SPVs: | 17 entities |
| Technology Mix: | Solar and wind assets |
All 17 SPVs are ultimately held by Actis through BluPine Energy, providing clear ownership structure and governance oversight for the renewable energy assets.
Strategic Context and Fund Utilization
Actis has demonstrated significant commitment to India's renewable energy sector through its dedicated investment strategy. The private equity firm has committed $800 million to India for developing approximately 4 gigawatts of renewable capacity through its Actis Energy-5 fund, according to a recent ICRA report.
The proceeds from this ₹5,400 crore loan facility will be strategically utilized to refinance existing borrowings that were previously raised from a diverse group of lenders. This refinancing approach allows BluPine Energy to optimize its capital structure, potentially reducing financing costs and extending debt maturity profiles to better match the long-term nature of renewable energy assets.
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