According to reports from The Economic Times, Avaada Ventures, the holding company of renewable energy group Avaada, plans to raise ₹3,515 crore through rupee-denominated non-convertible debentures (NCD) and $398 million through external commercial borrowing (ECB). The funds will primarily refinance existing liabilities and meet corporate requirements, with the NCD issue scheduled to open and close on September 17. The company had earlier obtained shareholder approval to issue up to ₹4,600 crore of NCDs.
As reported by The Economic Times, the NCD will have two components with a combined tenure of approximately three years. The company will raise ₹3,240 crore through Series A debentures and another ₹275 crore through Series B debentures. Both series carry a fixed coupon of 11.75%. The ECB facility, which is proposed to be senior and secured, can be raised in one or more tranches and will include banks such as Barclays Bank and DBS Bank among other potential lenders.
According to an India Ratings report cited by The Economic Times, proceeds from both the NCDs and the proposed ECB will be used to refinance existing liabilities. The debt will be used to pay Brookfield investment $685 million, $80 million to retire outstanding commercial paper at AVPL, and the balance towards transaction expenses. Brookfield, through its Global Energy Transition Fund, had committed $1 billion to AVPL in 2023 and has infused $400 million through OCDs as of March 31, 2026, with the balance commitment coming under a new structure and specific end-use requirements under discussion.
As reported by The Economic Times, Avaada is required to complete a monetisation event within 18 months of execution of the debenture trust deed. The OCDs have a tenor of over eight years through FY32, with no annual coupon payouts and redemption triggered only by an event of default or liquidity event. A company spokesperson did not immediately respond to a request for comment regarding the fundraising plans.
