Inox Wind Limited (IWL), India’s leading provider of wind energy solutions, announced today that it has entered into a consortium agreement with a group of banks led by ICICI Bank, securing limits of approximately Rs 2,200 crores. This limit is expected to increase to around Rs 2,400 crores based on a working capital assessment by ICICI Bank.
The majority of these limits are non-fund based, consisting of bank guarantees (BGs) and letters of credit (LCs). The approval was granted based on the financial strength of IWL’s balance sheet, without requiring any corporate guarantees or support from Gujarat Fluorochemicals Ltd. (GFL). IWL’s recent fundraising and operational expansion have made its balance sheet net cash positive.
With this new arrangement, any previous corporate guarantees or support provided to IWL by GFL will soon be lifted.
Commenting on this development, Mr. Akhil Jindal, Group CFO of INOXGFL Group, stated, “This consortium agreement reflects the banking community’s confidence in IWL’s financial strength. It is the result of several quarters of hard work, supported by the company’s strong operational performance and positive outlook. We are grateful to our banking partners who have been instrumental throughout our journey, as IWL has consistently fulfilled its commitments without any losses to the banks and financial institutions.”