Adani Green Energy Ltd (AGEL), India’s largest renewable energy company, has priced its maiden green bond issuance of US$ 750 million with a three-year maturity period at a fixed coupon of 4.375%.
The ListCo, AGEL, issued senior green notes under the 144A/Reg S format. The issuance was oversubscribed by 4.7 times. The order book comprised 48% investor participation from Asia, 28% from Europe, Middle East and Africa, and 24% from North America.
Adani Green Energy shall utilize the funds towards equity funding of the capex for its under-construction renewable projects.
“Under the structure, AGEL can draw up to US$ 1,700 million (including the present issuance) over the course of time subject to the covenants of the structure. The notes were rated Ba3 (Stable) by Moodys,” stated the company.
Earlier in the year, Adani Green Energy raised US$ 1.35 billion in debt funding for its under-construction renewable asset portfolio. The revolving fund would initially finance the 1.69 GW hybrid portfolio of solar and wind projects to be set up through its four special purpose vehicles in the Indian state of Rajasthan.
With this US$ 750-million ListCo issuance, AGEL has completed the final phase of its capital management plan, and now has a fully-funded program for both debt and equity for its stated target of 25 GW by 2025.
“The 4.7X oversubscription of this issuance is a testimony of the confidence of global investors in the world’s fastest-growing renewable energy platform and Adani’s capability to set up a world class clean energy business,” said Vneet S Jaain, MD and CEO, AGEL.
“This ListCo Senior Green Bond issuance is yet another landmark transaction for AGEL and fully funds our pipeline of projects and reinforces our commitment towards being a sustainability-focused global infrastructure platform. We expect to further accelerate our footprint and are firmly on track to become the world’s largest renewable energy company by 2030.“
The joint lead managers (JLMs) to the Issuance were Axis Bank, Barclays, BNP Paribas, DBS Bank Ltd., Emirates NBD Capital, IMI-Intesa Sanpaolo, MUFG, Mizuho Securities, SMBC Nikko, and Standard Chartered Bank. The JLMs were represented by Linklaters and Talwar Thakore & Associates. The Issuer was represented by Latham & Watkins and Cyril Amarchand Mangaldas. MUFG Bank acted as lead green structuring advisor and Standard Chartered Bank acted as co-green structuring advisor.
Adani Green Energy Limited, a part of the India-based Adani Group, has one of the largest global renewable portfolios with locked-in growth of up to 19.8 GW including operating, under-construction, awarded, and assets under acquisition catering to investment-grade counterparties. The company develops, builds, owns, operates, and maintains utility-scale grid-connected solar and wind farm projects.
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