Aditya Birla Renewables is reportedly seeking $1.5 billion in rupee-denominated loans, equivalent to nearly ₹14,517 crore, Reuters reported on Friday, citing three bankers familiar with the discussions.
The sources also told the news agency that the Mumbai-based company has reached out to multiple banks in the country, including the State Bank of India (SBI) and HDFC Bank, to secure the loans.
The bankers declined to be identified as they are not authorised to speak to the media. A spokesperson for Aditya Birla Renewables (ABRen) did not respond to Reuters queries sent by email on Thursday.
Why is the firm seeking funds?
The loans will help the company to finance its acquisition of Shell Plc’s Indian renewable energy arm and avoid relying on more expensive bridge financing, the news agency reported.
In July, Aditya Birla Renewables, a subsidiary of controlled-Grasim Industries Ltd, signed an agreement to to acquire 100% of the equity shares and securities of Solenergi Power Pvt Ltd, which owns the Sprng Energy group of companies. The seller is Shell Overseas Investment B.V., a wholly owned subsidiary of United Kingdom-based Shell Plc.
The transaction is at an enterprise value of $1.8 billion (around ₹17,400 crore), making this buyout amount the largest in the country’s renewable energy sector both by value and scale.
The Aditya Birla arm is not immediately required to make payment to Shell because the transaction is yet to be finalised, giving it time to finalise the financing structure and other such details.
According to a company press release, the transaction is expected to be completed before the end of the calendar year 2026, subject to the receipt of necessary regulatory approvals and satisfaction of other customary conditions under the transaction documents.
Why is Aditya Birla unit opting for long-term loans?
The Aditya Birla Group firm had earlier secured a $1.6 billion bridge commitment from MUFG Bank to finance the acquisition, two bankers told the news agency on the condition of anonymity.
The company is now looking to raise longer-term loans at the project level to avoid using the bridge facility, the three bankers cited earlier said.
Bridge loans are typically short-term financing arrangements that help companies meet immediate funding needs but tend to be more expensive. In contrast, long-term project financing is backed by project assets and can help reduce borrowing costs.
The said loans are expected to have a tenor covering around 80% of the project’s lifecycle, one of the bankers was quoted as saying.
The financing is likely to be split across 17-20 special purpose vehicles (SPVs) holding individual projects. These include projects that are already operational as well as those still under construction, the news report stated.