Aditya Birla Renewables (ABRen) is seeking approximately $1.5 billion in rupee-denominated loans to finance its acquisition of Solenergi Power, Shell’s Indian renewable energy business that includes the Sprng Energy group. The proposed borrowing is intended to replace a previously arranged $1.6 billion bridge financing commitment from MUFG Bank with longer-term project-level debt, according to bankers cited by Reuters on October 9, 2026. The acquisition was agreed in July at an enterprise value of $1.8 billion, or approximately ₹17,200 crore.
The financing strategy stands out because it would link borrowing to the renewable assets being acquired rather than relying solely on temporary acquisition debt. Bridge loans are generally used to fund transactions until permanent financing is arranged and can carry higher costs. By seeking rupee-denominated project loans, ABRen aims to establish a longer-term funding structure better aligned with the assets' operating lives and cash flows. One banker told Reuters that the expected loan tenor could cover around 80% of the projects' lifecycles.
The proposed financing could be distributed across 17 to 20 special purpose vehicles (SPVs), each holding individual renewable energy projects. The portfolio includes operational assets as well as projects still under construction. This structure would allow lenders to assess projects individually, including their assets and expected revenue streams, rather than treating the entire acquisition as a single undifferentiated borrowing. ABRen has reportedly approached Indian lenders, including State Bank of India and HDFC Bank, although the financing arrangements have not been finalized.
The acquisition itself covers a substantial operating and contracted renewable energy portfolio. Shell confirmed in July that Solenergi Power, including the Sprng Energy group companies, holds 5.0 GWp of solar and wind assets, comprising 3.3 GWp already operating and another 1.7 GWp contracted. The transaction includes the business's physical assets and commercial contracts, giving ABRen access to established generation projects alongside capacity that has yet to become operational. Completion remains subject to regulatory approvals and other closing conditions, with Shell expecting the transaction to conclude by the end of 2026.
The purchase would substantially expand ABRen's position in India's renewable energy market. Its existing portfolio of approximately 4.3 GWp to 4.4 GWp, combined with Sprng Energy's 5.0 GWp, would create a platform with around 9.3 GWp to 9.4 GWp of capacity. The combined business would span utility-scale generation as well as commercial and industrial renewable energy solutions, diversifying its customer base and project mix.
For Shell, the divestment is part of a broader effort to refine its power portfolio and recycle capital toward its asset-backed trading strategy. For ABRen, the immediate challenge is to complete the acquisition while securing a cost-effective financing structure for a portfolio spread across numerous project companies. The shift from bridge financing to long-term rupee loans could influence the acquisition's funding costs, but the final loan terms, lender commitments and transaction completion remain outstanding.