Adani Green Energy to Acquire 75 MW Solar Assets of Sterling and Wilson for Rs 446 Cr

Adani Green Energy has signed an agreement to acquire 100 percent stake in two SPVs holding 75 MW operating solar assets of Sterling & Wilson

Adani Green Energy Limited (AGEL), one of the largest renewable energy companies in India, has announced that it has signed a share purchase agreement for the acquisition of a 100 percent stake in two SPVs holding 75 MW operating solar projects/ assets of Sterling & Wilson Private Limited, a Shapoorji Pallonji group company.

The projects, commissioned in 2017, are located in Telangana and have long-term Power Purchase Agreements (PPA) with the Southern Power Distribution Company of Telangana.

The enterprise valuation of the two target SPVs is Rs 446 crore.

Vneet S. Jaain, MD & CEO, Adani Green Energy, said “strengthening our portfolio through organic and inorganic growth opportunities is an integral part of our vision to build a capacity of 25 GW by 2025 and become the largest renewables company in the world. We will leverage the strength of our platform and capital management philosophy to achieve operational improvements and value-accretive returns from the project.”

With this acquisition, AGEL will increase its operating renewable capacity to 3,470 MW with a total renewable portfolio of 15,240 MW. The firm has added that the closing of the transaction is subject to customary conditions.

The firm has had a big week for announcements, the first of which was the announcement of the acquisition of a 100 percent stake in a special purpose vehicle (SPV) holding 50 MW operating solar project of SkyPower Global, developers, and owners of utility-scale solar energy projects, with more than 25,000 megawatts of solar projects worldwide. Another project that is located in Telangana and commissioned in 2017, much like the assets acquired from Sterling and Wilson. This project also has an active long-term PPA with the Southern Power Distribution Company of Telangana.

Prior to that, the firm had announced the successful raise of a USD 1.35 billion debt package for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders. The revolving project finance facility would initially finance the 1.69 GW hybrid portfolio of solar and wind renewable projects to be set up in four SPVs in the state of Rajasthan, India. The debt package is one of the largest revolving project financing deals to date in the renewable sector in Asia.

According to the agreement, 12 international banks – Standard Chartered Bank, Intesa Sanpaolo S.p.A, MUFG Bank, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank U.A., DBS Bank Ltd., Mizuho Bank, Ltd., BNP Paribas, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V committed for the facility which will be the first certified green hybrid project loan in India.