Azure Power Global, a solar power producer in India, has agreed to sell its noncore solar rooftop portfolio to Radiance Renewables, a provider of competitive renewable energy solutions for commercial, industrial and residential customers in India, for INR 5.365 billion ($73.5 million) subject to purchase price adjustments.
Azure Power further expects to take an estimated INR 2,900–INR 4,400 million ($40 million–$60 million) one-time charge subject to purchase price adjustments and other conditions related to this sale. Proceeds are expected to be received before Dec. 31, 2021.
As part of the sale agreement, 48.6 percent of the equity ownership in the 42.7 megawatts will be transferred to Radiance, and the remaining 51.4 percent will be transferred post refinancing of Azure’s green bonds. The cash flows related to the 42.7 megawatts will remain in the SPV to service debt and cannot be up streamed until such refinancing and the remaining 51.4 percent equity ownersh