Adani Green Energy completes $750m bond funding ahead of maturity

Adani Green Energy Limited (AGEL), India‘s largest and a global leader in renewable energy solutions, has announced the completion of funding for its USD 750 million Holdco Bond, significantly ahead of its maturity date in September 2024.

AGEL successfully raised INR 9,350 Cr (USD 1,125 million) through preferential allotment to its promoters, contributing significantly to the funding. Shareholders approved this allotment with a resounding 99.9% majority in January 2024, followed by a substantial primary infusion of INR 2,338 Cr (USD 281 million) by the promoters.

The funds have been allocated to the Senior Debt Redemption Account (SDRA) and other reserve accounts related to the Holdco Notes. This ensures that the entire bond redemption amount is fully set aside, with term fixed deposits dedicated exclusively for the redemption of the Holdco Notes.

Adani Green Energy completes $750m bond funding ahead of maturity

Adani Green’s strategic financial management has led to the bond standing defeased, meaning the risk of non-payment has been effectively nullified, eight months before the maturity date. This move is in accordance with the terms detailed in the offering circular of the Holdco Notes.

This funding completion is part of AGEL’s broader equity capital raise program totaling USD 1.425 billion, which includes contributions from strategic partners like TotalEnergies JV. This significant capital infusion underlines the deep interest of long-term investors and the promoters’ commitment to AGEL’s strategic goal of achieving 45 GW capacity by 2030.

As a pioneering force in renewable energy, AGEL operates the largest renewable portfolio in India, with an operating capacity of 8.4 GW across 12 states. Notable achievements include developing the world’s largest wind-solar hybrid power cluster in Jaisalmer, Rajasthan. AGEL’s target aligns with India’s decarbonization goals, aiming to reach 45 GW by 2030.

The company is dedicated to leveraging technology to reduce the Levelized Cost of Energy (LCOE), enabling the widespread adoption of affordable clean energy.

Adani Green Energy Limited’s completion of the USD 750 million bond funding is a testament to its robust financial strategy and commitment to sustainable growth. This move positions AGEL as a front-runner in renewable energy, demonstrating its ability to attract significant investment and its dedication to achieving ambitious renewable capacity targets.