Adani Green Energy secures $1.4bn in follow-on funding for renewable projects

Adani Green Energy Ltd (AGEL), a global leader in renewable energy, has announced follow-on funding of USD 1.36 billion. This funding elevates AGEL’s Construction Financing Framework to USD 3 billion, supported by an international banking consortium.

Khavda Renewable Energy Park Development

The green loan facility is set to play a crucial role in the development of the world’s largest Renewable Energy Park at Khavda in Gujarat. The initial phase includes the development of 2,167 MW, setting the stage for the future expansion of the Khavda site. This project aligns with Adani Green Energy’s vision of achieving 45 GW operating renewable capacity by 2030 and contributes significantly to India‘s net zero ambitions.

International Banking Consortium’s Role

The funding agreements involve eight leading international banks, all of whom are returning lenders instrumental in establishing Adani Green Energy’s Construction Financing Framework since March 2021. The consortium includes BNP Paribas, Coöperatieve Rabobank U.A., DBS Bank Ltd, Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., Societe Generale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation.

Adani Green Energy Expands Construction Financing to $3 Billion for World’s Largest Renewable Energy Park

AGEL’s Capital Management and Development Program

The funding is a key element of Adani Green Energy’s capital management plan and accelerated development program. The company’s successful track record and the construction framework’s assurance structure have secured the continued trust of the international lending community.

Certification and Sustainable Development Goals

The facility is certified by Sustainalytics based on Adani Green Energy’s sustainable strategy, alignment with Green Loan principles, and the sustainability quality of the asset pool, contributing to Sustainable Development Goal 7 (affordable and clean energy).

Statements from AGEL’s Leadership

Vneet S Jaain, MD of Adani Green Energy, stated that the funding will boost the development of the Khavda site, which is poised to become the world’s largest Renewable Energy Park. He thanked the consortium for their trust in AGEL’s project execution capabilities and strategic growth vision aligned with India’s decarbonization goals. Amit Singh, CEO of AGEL, emphasized the importance of the Construction Financing Framework in AGEL’s development agenda and commitment to building a sustainable future.

Role of Banks and Legal Counsel

DBS Bank Ltd, MUFG Bank, Ltd., Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation acted as Co-Green structuring banks, with Coöperatieve Rabobank U.A. handling documentation and structuring, and MUFG Bank, Ltd. as the guarantee structuring bank. Latham & Watkins LLP and Saraf & Partners served as the borrower’s counsel, while Linklaters and Cyril Amarchand Mangaldas represented the lenders.