EverSource Capital’s Radiance Renewables in talks with FMO, IFU to raise $100 million

Radiance, with an operating renewable asset portfolio exceeding 600 MW, recently experienced a credit rating downgrade due to delays in securing equity capital, which led to increased reliance on debt and slowed project execution.

A spokesperson for FMO confirmed that the firms is a considering an investment in Radiance Renewables. Emails sent to Eversource and IFU did not elicit a response.

Radiance is owned by Green Growth Equity Fund, an alternative investment fund managed by EverSource Capital and anchored by Indian government-backed National Investment and Infrastructure Fund and the UK government. EverSource Capital is managed by homegrown private equity firm Everstone Group.

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Rating downgrade

In July, credit rating agency ICRA downgraded Radiance Renewables to “A-” from “A” and also downgraded the outlook on the company’s debt to “negative” from “stable”.

ICRA said the decision was based on moderation in the firm’s credit metrics following the additional mezzanine debt availed to fund the equity requirement as well as delays in capacity addition.

“The company availed a mezzanine debt of Rs 525 crore in July 2025, of which Rs 185 crore has been utilised to repay an earlier mezzanine debt and the balance will be used to fund the equity requirement of the upcoming projects in its subsidiaries.

“Delay on the part of the company in securing incremental equity funding constrained the progress of the planned expansion. The reliance on mezzanine debt over equity is expected to moderate the company’s debt coverage metrics at a consolidated level, going forward, with the DSCR (debt service coverage ratio) likely to be weak in FY2026 and modest thereafter,” the report said.

Radiance’s portfolio saw a modest growth to 610 MW of operating assets as of June 2025, from a portfolio of around 500 MW in May 2024, owing to the delay in acquiring land and raising funds, it said.

The company has an under-construction capacity of around 250 MW and a near-term pipeline of approximately 256 MW, which will take the overall installed solar capacity to 1.1 gigawatt (GW) over the next 12-15 months. Radiance plans to expand the capacity further to 2 GW by FY 2028.

“In this context, the ability of the company to raise equity to fund the capacity expansion and replace the mezzanine debt, thereby improving its debt coverage metrics, will remain a key rating sensitivity, going forward,” ICRA said.