PL Solar Renewable has raised structured debt

June 2025 — PL Solar Renewable Limited has raised structured debt to support the resolution and refinancing of its existing debt. The company faced challenges arising from high debt at the holding company level of its special purpose vehicles (SPVs), with negligible underlying collateral. Key obstacles included creating an asset-backed structure under which the underlying assets were acquired by non-banking financial companies (NBFCs), realigning debt with asset cash flows and raising fresh debt solely against project receivables. Financing was also required for the asset acquisition, backed by receivables from the solar asset without reliance on hard collateral.

PL Solar Renewable Limited operates a 36 MW solar asset in Uttarakhand, India, under a long-term power purchase agreement (PPA) with Uttarakhand Power Corporation Limited (UPCL) through 2041. The asset operated under an ownership model whereby it was owned by an NBFC and operated by group SPVs under a revenue-sharing agreement.

Our role in the transaction

Oaklins’ team in India played a pivotal role in delivering a structured, time-bound resolution that supported financial sustainability. The team structured a flexible repayment model allowing coupon-only servicing and ring-fenced monthly cash flows to service interest obligations, providing greater predictability for lenders. The transaction achieved more than 80% leverage against the asset value, optimizing capital deployment and reducing the equity requirement. A robust issuance was structured through multiple non-convertible debenture (NCD) tranches and cross-collateralization to safeguard investor interests. The transaction was completed end-to-end within two months despite its structural complexities, enabling the NBFC to fully monetize the asset and exit.