Avaada Group in Discussions with Standard Chartered, SMBC to Raise $700 Million for SJVN Solar-Wind Hybrid Project

Avaada Group is in advanced discussions with international banks, including Standard Chartered and SMBC, to secure a $700 million loan, as per The Economic Times report.  

The funds are aimed at financing a 1,410 MW solar-wind hybrid renewable energy project awarded by SJVN, with loan terms expected to span 20 years. 

Avaada Targets $700 Million for Renewable Energy Venture 

Green energy firm Avaada Group is negotiating a $700 million (₹6,500 crore) project finance loan with global banks. Targeted lenders include Standard Chartered, Sumitomo Mitsui Banking Corp (SMBC), Mitsubishi UFJ Financial Group (MUFG), and DBS Bank.  

The funding is intended for Avaada’s 1,410 MW hybrid project, backed by a 25-year power purchase agreement (PPA) with Sutlej Jal Vikas Nigam (SJVN). 

Loan Structure and Duration Under Finalisation 

The loan structure is reportedly being worked out, with discussions centred around a repayment option at the end of 5 years under a 20-year financing framework.  

This long tenure corresponds with the extended development and operational horizon of utility-scale renewable infrastructure projects. Final agreements are expected to be concluded by early February 2026. 

SJVN Awards and Capacity Details 

In 2025, SJVN awarded Avaada a 820 MW solar-wind hybrid project and a 590 MW inter-state transmission system project, both on a build-operate-transfer basis with 25-year PPAs.  

These projects form the foundation of the ongoing financing initiative, reflecting a significant step in India's renewable capacity developments. 

Read More: AM Green’s $10 Billion Kakinada Green Ammonia Project Reaches Equipment Installation Stage! 

Past Financing Activity and Credit View 

In December 2023, Avaada secured financing for a 300 MW SECI project through loans of ₹1,150 crore each from MUFG, SMBC, and a European bank, at 8.40% per annum for 5 years. 

ICRA, in a recent commentary, highlighted the group’s strong order book and demand outlook, while also pointing to leverage risks due to substantial capacity additions funded through debt. 

Conclusion 

Avaada’s pursuit of $700 million in financing from international lenders marks a continuation of its capital strategy to support large-scale renewable energy implementation. This deal complements previous fundraises aligned with its contracts from organisations like SJVN and SECI. 

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