Ayana Renewable Secures Rs 150 Crore in Debt for Renewable Projects

Ayana Renewable is initiating a significant debt raise of Rs 150 crore (around $17.4 million) from IL&FS Mutual Fund. This financing is happening shortly after Ayana entered a share purchase agreement with the ONGC-NTPC Joint Venture.

Details of the Debt Raise

The board of Ayana Renewable has approved a special resolution to issue 1,500 non-convertible debentures, priced at Rs 10,00,000 each, aiming to raise Rs 150 crore, according to their regulatory filing with the RoC. The capital will be utilised for refinancing existing debts, providing support to subsidiaries engaged in renewable initiatives, and covering other necessary infrastructure expenditures. Remarkably, these debentures will have a tenure of three years starting from the date of the initial drawdown.

About Ayana Renewable

Ayana Renewable is recognised as an asset-heavy Independent Power Producer (IPP) focused on the development and management of solar and wind energy projects backed by long-term Power Purchase Agreements (PPAs). Supported by the National Investment and Infrastructure Fund (NIIF) and various global investors, the company is actively exploring avenues for growth through equity, debt, and bonds, all while ensuring effective operational practices. Additionally, Ayana is looking into hybrid energy, battery storage solutions, and green hydrogen initiatives.

Recent Developments and Partnerships

Recently, NIIF, British International Investment (BII), and Eversource Capital entered into a share purchase agreement to sell their complete 100% stake to ONGC NTPC Green Pvt. Ltd. (ONGPL), a joint venture equally owned by ONGC Green Ltd. (OGL) and NTPC Green Energy Ltd. (NGEL), for an enterprise valuation of $2.3 billion.

Company Growth Overview

Established in 2018 by BII, Ayana has successfully raised over $700 million from NIIF, BII, and Eversource to date, with recent approval from the Competition Commission of India (CCI) for the aforementioned share agreement. In FY24, Ayana has achieved a moderate revenue growth of 4%, rising to Rs 856 crore from Rs 823 crore in FY23. However, the company’s profits have considerably decreased by 42.3%, with net earnings falling to Rs 45 crore during the same time frame.