Adani Green Secures Funding for $750 Million Holdco Bond Reserves
Adani Green Energy (AGEL) successfully concluded funding for the USD 750 million 4.375% notes due September 9, 2024 (Holdco Notes). The funds were received through preferential allotment of Rs 9,350 crore to the company's promoters, a move that has bolstered investor confidence, according to the Adani Group company. Shareholders of AGEL granted overwhelming approval for the preferential allotment with a 99.9% majority on January 18, 2024. Subsequently, the promoters injected Rs 2,338 crore (USD 281 million) as a primary infusion into AGEL last week. AGEL has allocated the funds in the Senior Debt Redemption Account (SDRA) and other reserve accounts associated with the Holdco Notes, completing the funding for these reserves. The entire bond redemptions are now fully secured in the respective accounts through term fixed deposits, earmarked exclusively for the redemption of the Holdco Notes.
In a statement, the Adani Group highlighted the success of the repayment, which was supported by a USD 1.425 billion equity capital raise program. This program includes a USD 1.125 billion preferential issuance by promoters and a USD 300 million contribution from the TotalEnergies joint venture. The robust response from long-term investors and strategic partners, coupled with the unwavering commitment of promoters, underscores AGEL's strategic priorities to achieve its 45 GW target by 2030.
As India's largest renewable energy solutions partner, AGEL plays a crucial role in facilitating the transition to clean energy. The company specializes in developing, owning, and operating utility-scale grid-connected solar, wind, and hybrid renewable power plants. With a committed growth trajectory up to 20.6 GW, AGEL currently boasts the largest operating renewable portfolio in India, with 8.4 GW spread across 12 states. This portfolio has effectively offset over 41 million tonnes of CO2 emissions cumulatively.