Serentica Renewables to raise ₹5,000 cr debt

livemint.com:

NEW DELHI : Serentica Renewables, a renewable power company promoted by Sterlite Power, is planning to raise ₹5,000 crore debt from a clutch of domestic lenders, two people aware of the development said. The company will use the money to build hybrid solar and wind power projects in Karnataka, Rajasthan and Maharashtra, with commissioning expected to start in 2024-25. This amount will be over and above the ₹5,600 crore that Serentica Renewables raised from Rural Electrification Corp.

(REC) and Power Finance Corp. (PFC) recently, the people cited above said on condition of anonymity. Serentica initially planned an external commercial borrowing (ECB) to raise the capital.

However, the company has been facing challenges in raising the foreign debt due to concerns over its links to Anil Agarwal-led Vedanta Resources Plc. Serentica Renewables is owned by Twin Star Holdings, a holding company that also owns stakes in London-based Vedanta Resources and Sterlite Power. The company is headed by Pratik Agrawal, who is also the managing director of Sterlite Power, which in turn is a Vedanta Group company.

“In the current scenario, there is a strong demand for renewable power assets, and Serentica has plans to ramp up its capacity further," one of the two people cited above said. “A clutch of domestic banks, including a leading private lender, are expected to be part of the consortium of lenders providing the financing," the person said. “Serentica is working towards financial closure of its planned 4GW of renewable installations.