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Aditya Birla Renewables Seeks $1.5 Billion Loan to Fund Shell Unit Buyout

Aditya Birla Renewables is courting Indian lenders for $1.5 billion in rupee-denominated loans to acquire Shell’s renewable energy arm, Solenergi Power. By securing long-term project debt, the firm aims to bypass a $1.6 billion bridge loan commitment from MUFG Bank, opting for cheaper, asset-backed financing to finalize the $1.8 billion deal.

Aditya Birla Renewables Seeks $1.5 Billion Loan to Fund Shell Unit Buyout

The company has approached major domestic institutions, including the State Bank of India and HDFC Bank, to structure the debt across 17 to 20 special purpose vehicles. These entities encompass both operational projects and those currently under development, allowing for a more stable funding profile. Bankers involved in the discussions note that the proposed tenor covers roughly 80% of the lifecycle of the underlying assets.

While the Aditya Birla Group previously secured interim support from MUFG, bridge financing typically carries higher interest rates that the company now intends to avoid. Because the transaction with Shell has not yet closed, the firm retains the flexibility to finalize this long-term capital strategy without immediate pressure. Neither the company nor the banks involved have provided official comment on the ongoing negotiations.

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