Adani Green Energy’s $362.5 million green bonds score E1/90 in S&P Green Evaluation


Independent power producer Adani Green Energy Ltd has received S&P Global’s highest Green Evaluation score of E1/90 for the US$362.5 million green bonds being issued by its three wholly owned subsidiaries. The bond proceeds will be used to finance and refinance solar power plants and related transmission infrastructure in India.

The issuers comprise Adani Renewable Energy Ltd, Kodangal Solar Parks and Wardha Solar (Maharashtra)—collectively termed Adani Green Energy Ltd Restricted Group 2 (AGEL RG2). These own and operate a portfolio of 10 utility-scale solar energy projects, with 570 MW of total installed capacity spread across two states in India (65% in Karnataka and 35% in Rajasthan).

“AGEL RG2’s intention to use 100% of its proceeds for solar PV power projects is the main driver of the high score,” said Cheng Jia Ong, the primary analyst of the Green Evaluation.

The Green Evaluation framework assesses financing on a scale of E1 (highest) to E4 (lowest). AGEL RG2’s E1/90 score comprises a mitigation score of 90, a transparency score of 89 and a governance score of 93.

The excellent ‘mitigation’ score (90) reflects S&P’s view of the position of solar PV-based technology at the top of Adani’s carbon hierarchy and the contribution to the systematic decarbonization of India’s heavily coal-reliant grid. It is somewhat offset by the limited capacity of solar PV compared to other renewable technologies.

The above-average ‘transparency’ score (89) benefits from AGEL’s commitment to annual public reporting on allocation of proceeds and the project’s environmental impact.

AGEL’s green bond framework, which has independent assurance and clear project selection criteria, contribute to a high governance score (93). The transaction is also aligned with the Green Bond Principles 2018, in S&P’s opinion.

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