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.