Fitch assigns Adani Green’s proposed USD notes ‘BBB- (EXP)’ rating with Stable outlook

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Fitch Ratings has assigned Adani Green Energy Ltd Restricted Group 1’s proposed $409 million senior secured notes due 2042 an expected rating of ‘BBB-(EXP)’ with a stable outlook. These U.S. dollar-denominated bonds will have a door-to-door tenor of 18 years and weighted average life of 12.7 years.

AGEL RG1 consists of Adani Green Energy (UP) Ltd, Parampujya Solar Energy Pvt Ltd and Prayatna Developer Pvt Ltd, which operate a cumulative 930 MW of solar generation assets across India. It intends to use the gross proceeds of the offering to refinance the US$500 million 6.25% Senior Secured Notes due 2024 which were issued on June. 10, 2019.

Fitch Ratings stated that the expected rating reflects the post-refinancing credit profile of AGEL RG1. The expected rating is underpinned by long-term fixed-price power purchase agreements (PPAs), commercially proven technology with a pure solar portfolio, experienced operations and maintenance (O&M) contractors, adequate financial profile and fully amortising debt structure eliminating the refinancing risk. Noteholders benefit from a standard security package and robust covenants restricting distributions.

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