Cyril Amarchand Mangaldas (“CAM”) acted as the lenders’ counsel in relation to an external commercial borrowing, letter of credit facilities, standby letter of credit facility, hedging facilities and a bridge letter of credit facility availed by Clean Max Tasman Private Limited (“Borrower”), which is a wholly owned subsidiary of Clean Max Enviro Energy Solutions Limited. The Borrower has availed the financing for construction of a 140 MW (AC) wind power project in the state of Karnataka.
This was the first external commercial borrowing transaction which financed a dollar denominated environmental attributes purchase agreement (EAPA) entered into with a non-resident offtaker. The EAPA adopted the principles of a virtual power purchase agreement with a strike price being agreed between the parties, any upside from sale of the power on the exchange being passed on to the offtaker and any downside being paid by the offtaker.
The transaction team was led by Sangita John, Partner; with assistance from Shehryar Khanum, Consultant; Samiya Zehra, Senior Associate; Daksh Mehta, Sanjana Reddy, Sharun Salvi and Sanya Katare, Associates.
