Acciona closes Indian wind farm financing in record time

Acciona Energy has closed the long-term financing of the 56.1-MW Tuppadahalli wind farm in three months.  It was a record time for this type of operation.

The wind farm is being built in the state of  Karnataka in south-west India with Infrastructure Development Finance Company Limited.



The financing is structured through the project finance modality for a sum of  US$43.6 million, which represents around 60 per cent of the total investment in the project. The amortization period has been set at 14 years, one of the longest ever granted in India for project finance in the wind power sector.

The first installment of the loan of US$11.5 million was authorized by IDFC the day after the signature of the agreement last 14th December.


"India is one of the strategic growth countries for ACCIONA Energy. Its stable regulatory climate is very conducive to investments in renewable energy. The lenders in India appreciate the expertise ACCIONA brings in choosing quality renewable projects. They are willing to partner with us in providing long term project financing. We are pleased to have IDFC involved with our Tuppadahalli project and appreciate their efforts in closing the financing in a short period of time. We hope this will be the first of a long lasting relationship," said Glen Reccani, Managing Director of ACCIONA Energy India Pvt. Ltd.

Talking on this transaction, Mr Vinayak Mavinkurve, Group Head, Project Finance of IDFC said, "IDFC is into financing renewable energy projects in a big way -wind, hydel, and looking at solar as well-. This association is a culmination of a deep understanding that IDFC developed about the strategic intent of ACCIONA Energy and marks a beginning of a long term relationship for IDFC. A pure play renewable energy company is always of interest to IDFC and ACCIONA Energy readily fits into that segment for us".