Reliance Industries has signed a $736 million green loan facility with five banks to fund its acquisition of Norwegian solar panel manufacturer REC Solar Holdings.
On October 10, Reliance had acquired 100 per cent shareholding of REC Solar from China National Bluestar (Group) for an enterprise value of $771 million.
The lenders to the borrowing of the loan are ANZ, Credit Agricole, DBS Bank, HSBC and MUFG.
In what could be the first such M&A financing from an Indian firm, the borrowing is split into a $250 million six-year term loan, a $150 million working capital facility and a $336 million five-year bank guarantee facility, according to a report by Refinitiv.
Singapore-incorporated REC Solar is the borrower on the loan, while Reliance New Energy Solar, a wholly-owned subsidiary of RIL and the acquiring entity, is the guarantor.
Earlier this year, Mukesh Ambani told Reliance shareholders that the company aims to turn net carbon zero by 2035, and announced huge investment plans in the alternate energy sector. It had also announced acquisition of 40 percent stake in SP Group company, Sterling and Wilson Solar.
