DSK Legal and Khaitan & Co have acted on Sunsure Energy’s ₹262 crore project finance from FMO and Axis Bank, structured through a private placement of secured, unlisted, redeemable non-convertible debentures. The proceeds will fund the development and operation of a 75 MWp DC open-access solar project in Tamil Nadu, in a transaction that marks a first for international development finance in India’s Group Captive C&I renewable energy space.
Introduction
Sunsure Energy Private Limited and its group companies secured ₹262 crore in structured project financing from Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) and Axis Bank Limited by way of secured non-convertible debentures and a term loan facility. The financing is led by FMO, the Dutch entrepreneurial development bank, which holds the majority of the debt, with the balance of approximately ₹71 crore sanctioned by Axis Bank.
The proceeds will fund the development and construction of the 75 MWp solar project at Ilayangudi, Tamil Nadu, and the project will supply clean power to commercial and industrial off-takers across the state under the open access route. Funds will additionally be applied towards other project costs and transaction expenses, as disclosed by the parties.
Deal Value
Sunsure Energy Private Limited and its group companies have secured a total project financing of ₹262 crore from FMO and Axis Bank Limited, structured by way of private placement of secured, unlisted, redeemable, non-convertible debentures.
Legal Teams Involved
DSK Legal — Counsel to Sunsure Energy
DSK Legal advised Sunsure Energy Private Limited on this transaction, assisting in reviewing and negotiating the transaction documentation and advising on matters relating to listing, security creation, and perfection. The team comprised:
- Anjan Dasgupta — Partner
- Roochi Loona — Partner
- Sameksh Shetty — Associate
- Aditya Shukla — (designation not disclosed in the raw input)
Khaitan & Co — Counsel to FMO and Axis Bank
Khaitan & Co advised FMO Entrepreneurial Development Bank and Axis Bank Limited in relation to the structured project financing. The transaction team comprised:
- Manisha Shroff — Partner, Banking & Finance
- Dr. Siddharth Srivastava — Partner, Insolvency & Restructuring, Banking & Finance
- Rashneet Kaur — Counsel
- Anwesha Dasgupta — Principal Associate
- Chirag Gohil — Senior Associate
- Shikha Mohini — Senior Associate
- Pratishthit Mittal — Associate
- Indrajeet Bannerjie — Associate
Significance and Impact
The transaction represents FMO’s inaugural project financing in India’s Group Captive Commercial and Industrial (C&I) renewable energy sector, marking a significant milestone that underscores the growing confidence of international development finance institutions in India’s clean energy landscape and the deepening of the country’s credit market.
FMO’s participation is aligned with its energy-sector strategy of backing fully green initiatives globally, supporting local renewable energy developers in their growth, and helping close the financing gap in the market. The investment also contributes to India’s target of reaching 500 GW of non-fossil fuel-based electricity capacity by 2030.
The transaction is also structured as a private placement of secured, unlisted, redeemable NCDs — an instrument increasingly used in Indian renewable energy project finance for its flexibility in security creation and documentation. For the latest benchmarking of law firm deal activity in India, see the Deal Meter.
The Sunsure Energy FMO Axis Bank project finance transaction is a landmark deal for India’s C&I renewable energy sector, being the first instance of FMO extending Group Captive project financing in the country. With DSK Legal advising the borrower and Khaitan & Co advising the lenders, the transaction reflects the growing role of structured NCD-based project finance instruments in scaling renewable energy infrastructure. The 75 MWp Ilayangudi project is expected to meaningfully contribute to Tamil Nadu’s open-access solar capacity.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is based on the details provided and publicly available sources.
