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Aditya Birla Renewables Seeks ₹14,500 Crore for Shell Deal
Aditya Birla Renewables wants to borrow about ₹14,500 crore.
The company plans to use the money to buy Shell’s renewable energy business in India.
It has reportedly approached several banks, including SBI and HDFC Bank.
The deal is worth about $1.8 billion.
The company had previously arranged a short-term bridge loan, which can be more expensive.
It now wants longer-term loans tied to the project to reduce reliance on that bridge financing.
The acquisition has not yet been completed.
It is expected to finish before the end of 2026, if approvals and other conditions are met.
Aditya Birla Renewables is reportedly seeking $1.5 billion, or about ₹14,517 crore, in rupee-denominated loans.
Reuters cited three bankers saying the company contacted several banks, including State Bank of India and HDFC Bank.
The proposed loans would help finance its acquisition of Shell’s Indian renewable energy business and avoid costlier bridge financing.
The acquisition of Solenergi Power, which owns the Sprng Energy group, is valued at $1.8 billion and was agreed in July.
The deal is expected to close before the end of 2026, subject to regulatory approvals and other customary conditions.
- Who
- Aditya Birla Renewables is reportedly seeking loans from banks including State Bank of India and HDFC Bank.
- What
- It is seeking about $1.5 billion (₹14,517 crore) in rupee-denominated loans to help fund its acquisition of Solenergi Power, which owns the Sprng Energy group.
- Where
- The company is based in Mumbai; the acquisition concerns Shell’s Indian renewable energy business.
- When
- The loan discussions were reported on Friday; the acquisition agreement was signed in July and the transaction is expected to close before the end of calendar year 2026.
- Why
- The loans would finance the acquisition and help the company avoid relying on more expensive bridge financing.
Long-term project financing
Bridge financing
Funding approach
Long-term project financing
The company is reportedly seeking longer-term, project-level loans backed by project assets.
Bridge financing
The company had previously secured a $1.6 billion bridge loan commitment from MUFG Bank to fund the acquisition.
Cost and timing
Long-term project financing
Long-term project financing could help reduce borrowing costs and avoid using the bridge facility.
Bridge financing
Bridge loans can meet immediate funding needs but tend to be more expensive; the articles report no stated argument in favor of their cost.
Key facts
- Reported loan sought
- $1.5 billion, equivalent to nearly ₹14,517 crore
- Reported lenders approached
- Multiple Indian banks, including State Bank of India and HDFC Bank
- Acquisition target
- Solenergi Power Pvt Ltd, owner of the Sprng Energy group
- Seller
- Shell Overseas Investment B.V., a wholly owned subsidiary of Shell Plc
- Acquisition enterprise value
- $1.8 billion, around ₹17,400 crore
- Prior bridge loan commitment
- $1.6 billion from MUFG Bank, according to two bankers cited by Reuters
- Expected completion
- Before the end of calendar year 2026, subject to regulatory approvals and customary conditions
- Reported loan tenor
- Expected to cover around 80% of the project's lifecycle, according to one banker
Sources
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