Using offshore green bonds, ACME Solar raises USD 334 million

The company has agreed upon 12 projects to invest in, funded by the US dollar-denominated green bonds. 

Acme Solar has announced raising USD 334 million through the issuance of offshore bonds. The company has agreed upon 12 projects to invest in, funded by the US dollar-denominated green bonds. 

In a press release, the firm stated that an offshore firm will issue the bonds, and the proceeds of the bonds will be used to purchase non-convertible debentures issued by ACME’s project. The bonds would have a tenor of five years and a coupon rate of 4.7 percent.

The bonds will be closed subject to customary closing conditions, after which ACME’s projects will issue non-convertible debentures. 

According to the company, the bonds received tremendous interest from marquee investors and will be listed on the Singapore Exchange Securities Trading.

The company further noted that a strong business fundamental underpins the underlying assets, which is demonstrated by the fact that the issue was oversubscribed by over three times. Green certification for these bonds was awarded by the Climate Bonds Initiative.

Neeraj Gupta, chief financial officer, ACME Solar stated, “Our platform now hosts a total of 4.8 GW of solar, which is supported by partners like Scatec, IFU, Unops, and Brookfield. It was the right time for ACME Solar to diversify our funding sources and tap into the overseas markets since they are deeper and can provide a stable and diversified source of finance for renewable assets.”

ACME Solar currently has a 4.8 GW of solar assets portfolio. This comprises 2.2 GW of operational projects and 2.6 GW of under-construction projects. These assets are spread across 12 states.

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