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Adani Green raises 9,785 cr in one of Asia's largest project financial deals

In August, Essel Infraprojects Ltd sold its operating portfolio of 205MW to Adani Green Energy at an enterprise value of  ₹1,300 crore. (Pradeep Gaur/ Mint)Premium
In August, Essel Infraprojects Ltd sold its operating portfolio of 205MW to Adani Green Energy at an enterprise value of 1,300 crore. (Pradeep Gaur/ Mint)

  • It said it has raised debt package for its under-construction renewable asset portfolio through definitive agreements signed with leading international lenders
  • The revolving project finance facility will initially finance the 1.69 gigawatt hybrid portfolio of solar and wind renewable projects

Adani Green Energy Ltd (AGEL) said on Thursday it has raised a 1.35 billion dollars (about 9,785 crore) 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 will initially finance the 1.69 gigawatt hybrid portfolio of solar and wind renewable projects to be set up in four special purpose vehicles in Rajasthan. According to the agreement, 12 international banks -- Standard Chartered Bank, Intesa Sanpaolo SpA, MUFG Bank, Sumitomo Mitsui Banking Corporation, Cooperatieve Rabobank UA, DBS Bank Ltd, Mizuho Bank Ltd, BNP Paribas, Barclays Bank Plc, Deutsche Bank AG, Siemens Bank GmbH and ING Bank NV -- committed for the facility which will be the first certified green hybrid project loan in India.

The new pool of liquidity strengthens AGEL's strategy to fully fund its under-construction asset and augurs well for its vision of scaling capacity to 25 GW by 2025.

The facility is an important element of AGEL's overall capital management plan and is key to fully funding its growth aspirations. The definitive agreement sets out a financing framework of agreed principles and procedures under which AGEL will engage with the financiers to raise financing efficiently and expeditiously for all future projects as per the agreed threshold parameters.

The facility underlines the overall development philosophy of Adani portfolio companies implemented through in-house developed project excellence framework committed to follow equator principles and the highest standard of due diligence covering all international standard environment, social and governance (ESG) aspects.

"We see this as yet another validation of our execution ability in the renewable space. We are committed to producing the least expensive green electron and the pace and scale we have embarked on puts us well ahead on this path," said AGEL CEO Vneet Jaain.

"We believe that establishing depth and diversity in our funding resources is critical for AGEL's vision to become the largest renewable player in the world."

Jaain said the banks that have committed to this strategic transaction are company's key partners in ensuring seamless access to global capital for its underlying renewable asset portfolio. The facility will also ensure capital recycling needs of the banks and make the same capital available for future projects of AGEL.

This revolving nature of the facility will help AGEL to achieve its goal of a 25GW portfolio by 2025. In addition, it positions AGEL well to capture growth in the attractive Indian renewable sector, said Jaain. (ANI)

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