As per a report by the Economic Times, if the deal comes through, it could be the first such M&A financing from an Indian firm
Mukesh Ambani-led Reliance Industries has reportedly raised $736 million through a green loan facility to finance its acquisition of Norwegian solar panel manufacturer REC Solar Holdings.
As per a report by the Economic Times, if the deal comes through, it could be the first such M&A financing from an Indian firm.
The debt facility will have an interest margin of around 120bps–125bps over Libor. The debt facility was taken under Singapore-incorporated REC Solar, and is secured against guarantees from Reliance New Energy Solar, a wholly owned subsidiary of Reliance Industries.
The loan facility consists of a $250 million six year term loan and a $150 million working capital facility, while another $460 million five year bank guarantee facility.
On October 10, Reliance signed a definitive agreement to buy Norwegian solar manufacturing company REC Solar for an enterprise value of $771 million from its owners China National Bluestar (Group) Co Ltd. The same day, Reliance also announced acquisition of 40 percent stake in SP Group company,
Sterling and Wilson Solar
Mukesh Ambani has revealed earlier this year during the company’s AGM the inception of tis new clean energy division, announcing huge investment plans in the alternate energy sector.
Mergers and acquisitions involving Indian companies hit a three-year high during the first nine months of 2021, according to data compiled by Refinitiv.
