Adani Green redeems $750 mn bonds

The move by Adani Green Energy Limited is in step with its January announcement of a plan to redeem the $750 million worth of notes, eight months ahead of the redemption date.
| Photo Credit: The Hindu

Adani Green Energy Limited (AGEL), the renewable energy arm of the ports-to power conglomerate run by billionaire Gautam Adani, on Monday (September 9, 2024) said it has redeemed $750 million worth of bonds as it deleverages business.

In a statement, the firm said it has completed “redemption of all outstanding $750 million 4.375% Holdco Notes due on September 8, 2024.” The move is in step with its January announcement of a plan to redeem the $750 million worth of notes, eight months ahead of the redemption date.

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Issued in September 2021, the three-year Holdco Notes supported AGEL’s high-growth objectives. During the period, AGEL’s capacity has increased more than three-fold — from 3.5 gigawatt (GW) to 11.2 GW, registering a CAGR (compounded annual growth rate) of 48%.

The company had in January stated it would pay $169 million from its reserves and internal accruals, and $300 million from the consideration from a joint venture with TotalEnergies Renewables. The remaining $281 million was to come from the initial tranche from a preferential issue of warrants.

That funding was completed with the receipt of the funds under the preferential allotment of ₹9,350 crore ($1.12 billion) to the promoters of the company.

“AGEL’s overall capital management philosophy has remained focussed on long-term value creation through asset development and positioned AGEL as a self-propelled growth engine. It also emphasises the structured approach to accomplish credit metrics akin to investment grade profile for its underlying debt capital raise programme,” the firm said in the statement on Monday (September 9, 2024.)

With this, AGEL is committed to having capital market issuances tailored for long-term infra asset classes supported through the predictable and robust cash flow stream to attain a long curve emulating 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 programme remains fully funded with such operational assets cash flows and the available construction facility pool,” it said.

In addition, AGEL’s promoters had agreed, in December 2023, to subscribe to a preferential warrant amounting to ₹9,350 crore, out of which, ₹7,013 crore ($835 million equivalent) shall be available with 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) Limited and Adani Infra Management Services Limited, for their continuous support in achieving the accelerated growth plan, putting AGEL on track to achieve 50 GW of renewable energy capacity by 2030,” it added.

AGEL is India’s largest renewable energy company and develops, owns, and operates utility-scale grid-connected solar, wind, hybrid, and hydro-pumped storage renewable power plants. AGEL currently has an operating renewable portfolio of 11.2 GW, the largest in India, spread across 12 States.

The company has set a target of achieving 50 GW by 2030, aligned to India’s decarbonisation goals.