Waste to energy maker SAEL has raised Rs. 740 crore through an issue of non-convertible debentures to unidentified investors, according to people briefed on the matter. This the first phase of a fund raise in which it will raise a total of Rs. 1350 crore. The 10-year unlisted non-convertible debentures are backed by collateral.

The debentures have been issued by SAEL along with its group companies Canal Solar Energy Private Limited and Universal Biomass Energy Private Limited. The funds will be utilized to refinance existing debt from lenders who have funded the renewable energy assets of the company which comprise solar and biomass plants.

SAEL's chief investment officer Varun Gupta who is believed to be leading the transaction was unavailable for comment. Khaitan & Co are the transaction counsel. Khaitan & Co. Partner Siddharth Srivastava who is said to have steered the legal aspects of the deal was also unavailable for comment.

Delhi-headquartered SAEL has the largest capacity of waste to energy power generation of around 160 megawatts at present. It uses stubble that is left as a by-product from rice cultivation to generate energy. The company has a plan to set up 1 gigawatt of such waste to energy and solar projects across multiple states. The company currently has 25 projects with a mix of waste to energy and ground-mounted solar projects.