Adani Green Energy Secures $750M Bond Funding

Adani Green Energy Limited (AGEL) has successfully completed the funding of reserves for its $750 million Holdco Bond, which is due to mature in September 2024. The funding sources include a joint venture with TotalEnergies, a preferential allotment to the promoters, and the company’s financial reserves. This move demonstrates the company’s commitment to achieving its target of 45 GW renewable energy capacity by 2030.

The Holdco Bond is a 4.375% note issued by AGEL in September 2021 to refinance its existing debt and fund its growth plans. The bond has a maturity date of September 9, 2024, and is secured by the assets of AGEL’s operating subsidiaries. The bond was rated BB- by Fitch Ratings and B+ by S&P Global Ratings, reflecting the company’s strong credit profile and growth prospects.

AGEL has completed the funding of reserves for the bond redemption eight months before the maturity date, using multiple sources of funds. According to a regulatory filing by AGEL, the breakdown of the funding sources is as follows:

• $300 million from TotalEnergies JV proceeds were funded in the Senior Debt Redemption Account (SDRA) on January 3, 2024
• The promoter’s preferential allotment of $281 million was funded in the SDRA on January 25, 2024
• An accumulated balance of $169 million in the Debt Service Reserve Account, Hedge Reserves, and Interest on Reserve Account

With these contributions, the total redemption of the bond is fully secured in the respective accounts through term fixed deposits, which are earmarked exclusively for the redemption of the Holdco Bond. This strategic financial planning ensures that the bond stands defeased, meaning it is effectively considered repaid, eight months before the maturity date.

This move is in line with AGEL’s commitment to achieving its target of 45 GW renewable energy capacity by 2030. The successful equity capital raise program, which includes funds from both long-term investors and strategic partners, along with the unwavering commitment of the promoters, has been pivotal in reaching this goal.

AGEL is one of the largest renewable energy companies in India and the world, with a portfolio of 25 GW of operational, under-construction, and awarded projects. The company aims to become the world’s largest renewable energy platform by 2030, with a vision to help India transition to a greener and cleaner energy future.