Gravitas advises on CleanMax refinancing

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CleanMax IPP 2, a subsidiary of CleanMax Solar operating a 32MW photovoltaic solar power project in Bellary, Karnataka, raised ₹1.58 billion (US$22.6 million) in loans from PTC India Financial Services to refinance its existing outstanding debt from KKR India Financial Services.

KKR India Financial Services, the non-banking finance arm of private equity company KKR, had lent ₹1.5 billion to Cleanmax IPP 2 in January 2018. The Mumbai-based CleanMax Solar, a leading rooftop solar developer, will utilize the funds to repay capital expenditure loans and for the implementation of its Bellary project.

Gravitas Legal was the adviser to PTC India Financial Services, a lender to the power sector promoted by power trading services company PTC India.

“While the transaction was in itself a routine project finance deal, the refinancing and the fact that this was a project where electricity was distributed through open access made it stand out. Further, customization of documentation and presenting due diligence findings at the promoter level also contributed to making it a noteworthy transaction,” said Tanuj Sud, a partner at Gravitas Legal, who led the transaction advisory team.

The requirement to delve into the contractual arrangements at the promoter level to ensure conformity with the representations being made by the promoter in the financing documents was an interesting learning experience from the deal, Sud said.

The Gravitas legal team included principal associate Henna Vadhera and associates Aditya Pandey and Aditya Prakash. Cleanmax was represented by its in-house legal and secretarial team.