Indian renewables developer Avaada Group has refinanced INR 12.5bn (USD 145m) of secured local currency bonds with an amortising term loan from Axis Bank, according to three sources familiar.

The debt has a 15-year tenor and is priced at 8.5%, the sources said. The term loan would be secured against the assets of the relevant project companies, two of the sources said.

Axis Bank may look to sell down the loan, one of the sources said.

The original facility comprising non-convertible debentures was issued three years ago and carried a coupon of around 7%, two of the sources said.

An Avaada spokesperson, in response to Infralogic’s query, confirmed the transaction.

The refinanced outstanding green bonds matured in February and cover four of Avaada’s operating special purpose vehicles, she said in an emailed statement.

This was done through two separate transactions involving a club of Indian banks and financial institutions, she said, adding that with these, Avaada has released a total of close to USD 125m from refinancing deals this financial year for deployment in its future projects.

Canada-headquartered Brookfield Asset Management agreed to invest USD 1bn in Avaada Ventures, the holding company of the Avaada Group, in mid-2023. Avaada is also backed by GPSC, a part of PTT Group, Thailand.

Brookfield paid out a USD 400m tranche at the time. The remainder was to be given depending on performance-linked milestones.

The money was meant largely for funding Avaada’s green hydrogen and ammonia projects in India.

Established in 2009, Avaada focuses on solar modules manufacturing, wind and solar development, green hydrogen, green methanol, green ammonia, and sustainable aviation fuel.

The company has 5 GW of installed capacity with a target to achieve 11 GW by 2026, according to its website.

Axis Bank did not respond to a request for comment.