ANNOUNCEMENTS
Billions of dollars of investments required for the development of the RE sector can not be emphasized more across different levels around the globe. Major traction has been gained from funds intended for climate change. With the renewable energy sector in developing markets getting more attraction from investors with the energy demand set to rise in these countries with major growth projection across India and China. Being emerging markets like India have to deal with high financial risks leading to a rise in the cost of capital in construction phases of the projects. With innovation in financing strategies, the varying reputation of borrowers, and the decreasing cost of installations the RE sector is to trend towards the decreased cost of energy supply and become cheaper than fossil alternatives. To free up the lockdown capital, getting more returns from the project, better valuation of the project, Refinancing can help achieve these objectives. The current work aims to look for the impact that refinancing can have on a utility-scale SPV project as such is only possible for larger projects. By adopting a method of developing a three-way integrated financial model and developing scenario of refinancing through green bond and second debt. The work has shown an increase in 33bps and 108 bps correspondingly. Alongside these results, the sensitivity of equity IRR w.r.t rate new funding, duration, and time of when refinancing has been conducted. A review of refinancing deals in India has been shared to look for progress. The compare the financing results by a green bond as well as debt. This work will help relevant stakeholders to look for the selection of financing instrument This work will help to show the impact of adopting refinancing as a strategy to a project helps in increasing returns and free up the capital by an early lender to invest in furthermore projects hence supporting the momentum of the growth in investment in RE sector.
