Adani Green raises Rs 612 cr to refinance debts pertaining to solar projects

Adani Green Energy (UP) Ltd, Prayatna Developers Pvt Ltd and Parampujya Solar Energy Pvt Ltd – three subsidiaries of Adani Green Energy Ltd – that collectively house 930 MW of operational solar power projects, have raised Rs 612.30 cr by their maiden domestic bond issuance. This has been done on a private placement basis.

The Rated, Listed, Secured, Redeemable, Non-Convertible Debentures (NCDs) of face value of Rs 10,00,000 each, in multiple series, have an average annualized coupon rate of 7.83% per annum (fixed) and a tenure upto 12 years. The proceeds from the NCDs will be utilised to part-refinance existing rupee term loan bearing higher interest cost. Hence, it looks like a favourable deal for the renewable energy player. The NCDs are rated AA/Stable by CRISIL Limited and AA(CE)/Stable by India Ratings.

The NCDs will be listed on the Wholesale Debt market segment of BSE Limited. “Optimization of the cost of borrowing is key to our capital management program and this transaction reinforces the Company’s strategy,” said Vneet S Jaain, MD & CEO of Adani Green Energy Ltd.

He also apprised, “We are encouraged by the robust support from the finance community, which recognises the strength of the Company’s business model and our capital management approach. We could manage this fund raising at favorable terms. This puts the Company on a more solid platform for long-term growth.”

The success of the domestic debt market issue will open up a new source of funding, allowing for more flexibility in capital structure while also lowering interest costs.

Adani Green Energy Ltd (AGEL) has one of the largest global renewable portfolios with an overall portfolio of 20.3 GW including operating, under-construction, awarded and assets under acquisition catering to investment-grade counterparties. The company now has a $40 billion market cap that is helping India meet its COP21 goals.