India Solar Project Financing Case Study

Project Finance Case Study

Solar Project Financing In India With 20% Sponsor Equity

A sponsor developing a utility-scale solar PV asset in Rajasthan had site control, EPC path, and a signed offtake structure, but only 20% equity ready for deployment. The project needed a full closing stack for construction and commissioning. The sponsor engaged Financely to arrange the remaining capital and drive the file through close.

Financely structured and arranged the remaining 80% through a blended stack: senior project debt plus a subordinated tranche sized to keep debt service coverage within lender tolerance.

The mandate covered lender routing, stack design, documentation discipline, and closing control.

Case Snapshot

Item Case Facts
Country India
State Rajasthan
Project Type Ground-mounted utility-scale solar PV
Sponsor Equity 20% at financial close
Capital To Arrange 80% remaining stack
Stack Arranged Senior INR term debt plus subordinated capital, with reserve support built into the structure
Use Of Funds EPC payments, interconnection costs, interest during construction, contingency, and reserve funding

Challenge

The sponsor had a credible project and committed equity, yet the initial lender conversations stalled on stack completeness and downside controls. Senior lenders wanted a tighter capital plan, stronger reserve treatment, and a clear rulebook for cash waterfall and covenant monitoring.

How We Executed

Capital Stack Design

We translated project cash flows into a lender-ready stack that separated senior risk from subordinated return targets.

Senior Debt Placement

We positioned the case to debt providers with a clear construction draw plan, covenant framework, and reserve logic.

Subordinated Layer

We arranged the mezzanine-style portion to close the equity gap without breaking senior debt conditions.

Closing Control

We managed condition tracking across lender counsel, sponsor team, and technical advisors through signed financing documents.

This deal moved once the stack was presented as one coherent credit package, not as separate funding requests handled in parallel.

Outcome

The project reached financial close with the full capital stack in place. Construction funding milestones were met, the sponsor preserved project control, and the financing structure supported execution through commissioning.

For sponsors preparing similar files, our execution model follows the same framework described on How It Works and What We Do.

Client Review

★★★★★

“We had only 20% equity ready and needed a full project stack to close. Financely built the structure, handled lender process pressure, and kept the file moving. The team stayed precise on documentation and clear on what had to be fixed before committee review.

We closed with senior debt and subordinated capital in place, then moved into execution without reopening the capital plan.”

Managing Director, Solar Project Sponsor, India

Disclaimers

  1. Client identity and selected commercial terms are withheld for confidentiality and compliance reasons.
  2. This case summary is informational and does not constitute legal, tax, accounting, or investment advice.
  3. Financely acts on a best-efforts advisory and placement basis. Funding outcomes depend on underwriting and third-party approvals.
  4. Each project is assessed on its own merits, including sponsor profile, cash-flow quality, documentation, and market conditions.
  5. Past transaction outcomes do not guarantee future results.

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Financely is a transaction-led capital advisory desk. Mandates are executed under defined scope, compliance checks, and lender underwriting standards.