NEW DELHI:
Adani Green Energy Ltd
(AGEL) on Monday announced that it has successfully redeemed $750 million worth of bonds as it deleverages business.
The company stated that it has completed “redemption of all outstanding $750 million 4.375 per cent
Holdco Notes
due on September 8, 2024.”
The three-year Holdco Notes, issued in September 2021, supported AGEL’s high-growth objectives.
AGEL’s capacity increase from 3.5 gigawatt (GW) to 11.2 GW during this period, achieving a CAGR (compounded annual growth rate) of 48 per cent.
In January, the company had outlined its plan to pay $169 million from its reserves and internal accruals, $300 million from the consideration received from a joint venture with TotalEnergies Renewables, and the remaining $281 million from the initial tranche of a preferential issue of warrants. The funding was successfully completed upon receiving the funds under the preferential allotment of Rs 9,350 crore ($1.12 billion) to the company’s promoters.
The company also highlighted its structured approach to achieving credit metrics similar to an investment grade profile for its underlying debt capital raise program. With this redemption, AGEL aims to tailor its capital market issuances for long-term infrastructure asset classes, supported by predictable and robust cash flow streams that emulate the underlying asset life.
“Over the years, the Capital Management Plan has matured to allow AGEL to have a ‘seasoned’ portfolio with a superior operational asset base supporting the under-construction development. With surplus cash from operating assets augmenting the under-construction projects’ requirement, AGEL’s overall capex program remains fully funded with such operational assets cash flows and the available construction facility pool,” AGEL said.
Additionally, Adani Green Energy Limited (AGEL) announced that its promoters have committed to subscribing to a preferential warrant worth Rs 9,350 crore in December 2023. Out of this amount, Rs 7,013 crore (equivalent to $835 million) will be available for AGEL to fund any accelerated capital expenditure requirements.
“AGEL thanks its investors and lenders for their confidence and its vendor partners, including Adani Infra (India) Ltd and Adani Infra Management Services Ltd, for their continuous support in achieving the accelerated growth plan, putting AGEL on track to achieve 50 GW of renewable energy capacity by 2030,” the company stated.
AGEL’s current operating renewable portfolio stands at 11.2 GW, which is the largest in India and is spread across 12 states. It has set an ambitious target of achieving 50 GW of renewable energy capacity by 2030, which aligns with India’s decarbonization goals.
