Inox Wind Limited, a developer of wind energy solutions, said it has signed an important agreement with a consortium of ten banks led by ICICI Bank for credit facilities worth around Rs 2,200 crore, with the scope to rise to Rs 2,400 crore depending on a working capital assessment from the part of ICICI Bank. The deal was announced on Monday.
The share price of Inox Wind surged by 5.16% after the announcement and closed at Rs 253.90 on the Bombay Stock Exchange (BSE). Non-fund-based financing mainly includes limits that include bank guarantees and letters of credit. Importantly, these facilities have been rendered solely based on the company’s financial strength, obviating the requirement for a corporate guarantee or any form of support from its parent group, Gujarat Fluorochemicals Ltd. (GFL). Therefore, whatever funding GFL might have provided under this new agreement would end.
Inox Wind also said this round of funding has put its balance sheet on a net cash-positive basis. “This consortium agreement demonstrates the banking community’s confidence in IWL’s financial health. It reflects the hard work we have invested over the past few quarters, backed by strong operational performance and a positive outlook,” stated Akhil Jindal, Group CFO of the INOXGFL Group.
Funding would be the biggest step in Inox Wind’s final vision as it explores greater heights in its role in the renewable energy sector. Current elements, such as the growing concern of climate change, are welcoming factors that contribute to demand growth for wind energy solutions; of course, this calls for strategic moves by Inox Wind to lead India toward more sustainable energy sources.
This consortium shall further strengthen the company’s projects and position it as a major contributor to India’s renewable energy goals while positioning itself as the radically needed gateway to the sustainable energy future.
