Azure Power plans to raise $700 million for expansion
Azure Power Global is looking to tap existing investors — Canada's CDPQ and OMERS — and also exploring options like selling minority stakes in its projects and bank debt, to raise as much as ₹5,800 crore ($700 million) to fund capacity expansion.
It is considering part equity and part debt for the fundraising as it works to limit leverage.
«Azure Power will need $700 million to deliver the next three power projects including 700 MW solar, 120 MW wind and 150 MW hybrid project,» said a company spokesperson. «To deliver the projects by next financial year, Azure will have to bring in part equity and raise debt.
The company is relying on several sources to meet the capital need.»
Azure Power's portfolio comprises 7.2 GWs, with 2.9 GWs in operation and 4.3 GWs contracted or awarded.
A CDPQ spokesperson declined to comment while an OMERS spokesperson did not respond to a request for comment. CDPQ owns a 53.4% stake in the company while OMERS holds 21.4%.
The remaining is public shareholding.
Azure Power has been facing a series of challenges, raising concerns about potential defaults and delisting. In July, the company assured bondholders in Singapore that it would publish its long-delayed audited results for FY22 within 14 weeks to avoid a technical default.
