
JSW Energy's renewable-energy arms successfully raised more than ₹4,000 crore in long-term loans from major financial institutions to finance ongoing and future renewable energy projects. According to reports from The Economic Times, the financing was provided by Axis Bank, Bank of Maharashtra, and National Bank for Financing Infrastructure and Development (NaBFID). These loans are structured for 15-20 years with an annualised interest cost below 9%, highlighting a strategic shift towards bank financing over corporate bond issuances amid high bond yields.
The financing structure includes ₹2,000 crore from Axis Bank for 15 years at sub-8%, ₹930 crore from Bank of Maharashtra, and ₹1,130 crore from NaBFID for 20 years at rates around 10%. As reported by The Economic Times, these loans feature competitive interest rates and extended repayment periods, with the company raising the ₹2,000 crore from Axis Bank at sub-8% rates. Bank loans have emerged as a more attractive funding source than corporate bonds in recent months, as companies receive more competitive pricing and quicker execution.
Indian renewable-energy companies are increasingly turning to long-tenor bank loans to fund projects through the construction phase before they start generating steady cash flows. According to The Economic Times, JSW Energy, the power-generation arm of the JSW Group, has been expanding its renewable-energy portfolio as part of the group's transition towards cleaner sources of power. A part of the loans is for refinancing projects currently under construction, with the company maintaining an operating portfolio of 14.54 GW as of end-June.
JSW Energy aims to expand its total capacity to 30 GW by 2030, as reported by The Economic Times. The company's renewable energy expansion aligns with the broader trend of Indian renewable-energy companies seeking long-tenor bank loans to fund projects through construction phases. This financing approach provides the company with the necessary capital to support its ambitious growth targets while maintaining competitive pricing and extended repayment terms.