Founder of Brookfield-Backed Avaada Seeks $750 Million Loan

Vineet Mittal Photographer: Dhiraj Singh/Bloomberg Photo by Dhiraj Singh /Bloomberg

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(Bloomberg) — The founder of Avaada Group, one of India’s largest clean-energy company, is planning to borrow about $750 million from a group of global lenders to refinance the firm’s existing debt, according to people familiar with the matter. 

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Vineet Mittal, who’s also chairman of Brookfield Renewable Partners-backed Avaada Group, is seeking the deal through an entity and has mandated at least two banks including Barclays Plc and DBS Bank to underwrite it, the people said, asking not to be identified as the discussions are private. The proceeds will be used to repay a $1 billion credit facility that was issued by Brookfield in 2023 to Avaada Ventures Pvt., they said. 

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The new package — likely to be split into an offshore loan and rupee-denominated bond — is expected to have a tenor of about three years, the people said, adding its structure and terms aren’t finalized. Other global lenders, including Standard Chartered Plc, Nomura Holdings Inc. and JPMorgan Chase & Co., are also in talks to join the lender group, they said. 

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If completed, the financing package would further reflect global investors’ confidence in India’s renewable energy, a fast‑growing sector tackling the immense challenge of transitioning the world’s third‑largest carbon emitter toward a goal of lifting non‑fossil fuel capacity to 60% by 2035. 

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Avaada Group, which includes Avaada Energy, is one of India’s fastest-growing renewable energy developers with a portfolio spanning solar, wind and hybrid power projects. It is also considering a Mumbai initial public offering for its solar cell unit, Avaada Electro.

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Avaada Group, Barclays and JPMorgan Chase didn’t immediately reply to requests seeking comment. DBS Bank, Standard Chartered and Nomura declined to comment. 

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The dollar loan portion of the package will be priced over the secured overnight financing rate, and some lenders are expected to eventually “down-sell” it to other investors, the people said. 

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In 2023, the group raised $1.07 billion to fund green hydrogen and ammonia ventures, according to its statement at the time. Brookfield Renewable would be investing up to $1 billion in Avaada Ventures Pvt., it said. 

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India’s government has set a target of installing 500 gigawatts of non‑fossil fuel capacity by 2030 and achieving net‑zero emissions by 2070, spurring billions in green investment.

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