Author: Aadarsh Patel | EQMint
What’s the deal? Aditya Birla Renewables is seeking around $1.5 billion in rupee-denominated loans to finance its planned acquisition of Shell’s Indian renewable energy business, according to Reuters. The funding plan aims to replace a previously secured $1.6 billion bridge loan commitment from MUFG Bank with longer-term project financing.
In July 2026, Aditya Birla Renewables agreed to acquire 100% of Solenergi Power, which includes the Sprng Energy group companies, from Shell for an enterprise value of $1.8 billion
Why now? Bridge loans provide short-term funding, often at a higher cost. Aditya Birla Renewables is exploring longer-term loans backed by individual renewable energy projects to reduce financing costs and better match repayments with the assets’ operating
What it means? The company is expected to distribute the proposed financing across 17 to 20 special purpose vehicles holding individual projects, including operational assets and projects under construction. The loans could have tenures covering around 80% of the projects’ lifecycles, according to bankers cited by Reuters.
The funding discussions also involve domestic lenders, including the State Bank of India and HDFC Bank. The final financing structure remains under discussion, and the acquisition has yet to close.
By the numbers
- $1.8 billion: Agreed enterprise value of the Shell acquisition.
- $1.5 billion: Rupee-denominated loans being sought.
- $1.6 billion: Earlier bridge loan commitment from MUFG Bank.
- 17 to 20: Expected number of project-level entities involved in the financing structure.
- 5.0 GWp: Sprng Energy’s portfolio capacity, including 3.3 GWp operational and 1.7 GWp contracted.
What’s next? The company will need to finalise its financing arrangements and complete the regulatory and other closing requirements. Shell expects the transaction to close by the end of 2026, subject to the necessary approvals and closing conditions.
EQMint Take on Aditya Birla Renewables
The proposed funding shift shows how financing choices can shape large renewable energy acquisitions. Long-term rupee loans could reduce borrowing costs and currency exposure while matching debt with project cash flows.
The final outcome will depend on lending terms, project performance and completion of the acquisition. For India’s renewable energy sector, the deal could also bring a larger portfolio of solar and wind assets under Aditya Birla Renewables.
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