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Avaada Power to raise INR 1,500 crore in structured credit

Power News - Published on Wed, 27 Dec 2017

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Live Mint quoted two people aware of the company’s discussions with potential investors as saying that Avaada Power Pvt Ltd, a renewable energy company started by a co founder of Welspun Renewable Energy Pvt Ltd is looking to raise as much as INR 1,500 crore in structured credit as it looks to build out its renewable energy portfolio and strengthen its engineering, procurement and construction business.

Avaada, founded by Vineet Mittal, is currently in the process of bidding for various renewable energy projects and is raising funds to meet operational expenses, according to the people cited above, who requested anonymity.

The first of the two people said on condition of anonymity said that “The company has approached several large structured credit funds. The funding will be raised at the holding company level, which will then infuse the funds into various special purpose vehicles of the company.”

Mint reported in July that Avaada was one of the bidders to build solar capacities at Adani Renewable Energy Park Rajasthan Ltd. It also placed a bid at the auction of 500MW of capacity at the Bhadla solar park in Rajasthan. The company has in the past implemented projects aggregating to 1,141MW.

Last year, Welspun Renewable Energy, co-founded by Mittal and B.K. Goenka, sold its renewable energy business to Tata Power Renewable Energy Ltd for INR 9,249 crore. According to a recent report by Care Ratings, the promoters of Avaada are expected to infuse a part of the sale proceeds into the new company.

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Posted By : Nanda Koijam on Wed, 27 Dec 2017
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