JSW Energy RE arms borrow ₹4,000 cr from banks, NaBFID

Mumbai: JSW Energy's renewable-energy arms raised more than ₹4,000 crore in long-term loans from Axis Bank, Bank of Maharashtra and term lender National Bank for Financing Infrastructure and Development (NaBFID) to finance their projects, people familiar with the matter said.

These loans are structured for 15-20 years with an annualised interest cost below 9%, highlighting a shift towards bank financing over corporate bond issuances amid high bond yields.

The company raised ₹2,000 crore from Axis Bank for 15 years at sub-8%. It also secured a ₹930 crore loan from Bank of Maharashtra and ₹1,130 crore from NaBFID for 20 years at rates around 10%.


JSW Energy, Bank of Maharashtra and NaBFID did not respond to emailed queries till press time on Thursday. Axis Bank refused to comment.

Bank loans have emerged as a more attractive funding source than corporate bonds in recent months, as companies receive more competitive pricing and quicker execution.

Indian renewable-energy companies are increasingly turning to long-tenor bank loans to fund projects through the construction phase before they start generating steady cash flows.

JSW Energy, the power-generation arm of the JSW Group, has been expanding its renewable-energy portfolio as part of the group's transition towards cleaner sources of power. A part of the loans is for refinancing projects currently under construction, the people said. JSW Energy had an operating portfolio of 14.54 GW as of end-June, and it aims to expand its total capacity to 30 GW by 2030, according to a company investor presentation.