Adani Green completes funding of the reserves for the $750 million Holdco

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Adani Green Energy Ltd (AGEL), India’s largest renewable energy solutions provider, announced today it has completed the funding for the $750 million 4.375% notes due Sept. 9, 2024 (Holdco Notes). The company completed the funding with INR 2,338 crore ($281 million) proceeds from the initial tranche of the promoter preferential allotment of INR 9,350 crore.

“The AGEL shareholders approved the preferential allotment with an overwhelming 99.9% majority on 18 January 2024 and thereafter the promoters funded INR 2,338 crore ($281 million) primary infusion into AGEL last week. AGEL has set aside the funds in the senior debt redemption account (SDRA) and other reserve accounts of the Holdco Notes, post which the funding of the reserves has been completed,” stated AGEL.

Other sources of funds include $300 million from TotalEnergies JV proceeds and $169 million from debt service reserve account, hedge reserves, and interest on reserve account.

The transaction for the TotalEnergies 1,050 MW JV proceeds closed on Dec. 26, and the funds are already lying in the SDRA of the Holdco notes.

With the latest fund infusion from promoters, the entire amount of the $750 million Holdco Notes is fully secured eight months before its maturity date. With this outcome, AGEL has fully defeased the Holdco Notes, eight months prior to the maturity date and has further resulted in significant deleveraging in AGEL by way of equity proceeds while continuing to deliver on the growth plans.

“Underpinning the repayment is the successful equity capital raise program of $1.425 billion (includes $1.125 billion of preferential issuance by promoters and $300 million from TotalEnergies JV), reflecting the deep interest of long-term investors, strategic partners, coupled with unwavering promoter commitment to meet AGEL’s strategic priorities of achieving its target of 45 GW by 2030,” stated AGEL.

AGEL develops, owns, and operates utility-scale grid-connected solar, wind and hybrid renewable power plants. With a locked-in growth trajectory up to 20.6 GW, it currently has an operating renewable portfolio of 8.4 GW, the largest in India, spread across 12 states, offsetting over 41 million tonnes of CO2 emissions cumulatively. The company has set a target of achieving 45 GW by 2030.

 

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