Aditya Birla Group Secures $2.5 Billion for Shell Asset Buy

The Aditya Birla Group has secured approximately 240 billion rupees ($2.5 billion) in loan commitments from four Indian banks to finance the acquisition of Shell Plc's renewable energy assets in India. This funding exceeds the conglomerate's initial requirement of 140 billion rupees.

Axis Bank and State Bank of India each committed up to 70 billion rupees, while Union Bank of India and Punjab National Bank offered roughly 50 billion rupees each. The loans carry interest rates between 7.6% and 7.7% with tenors ranging from 12 to 20 years.

Aditya Birla Renewables Ltd. will execute the deal by purchasing 100% of Solenergi Power Pvt., granting the group control of a 5-gigawatt portfolio that includes Sprng Energy. The financing was made possible by a July 1 policy change from the Reserve Bank of India that allows local banks to finance corporate acquisitions.