Adani Green Energy Limited (AGEL) has announced this week that it had completed its $2 billion fundraising campaign to build 25 gigawatts (GW) of renewable energy-producing capacity by 2025. AGEL said on 2 September that it had raised $750 million through a three-year senior note called the ListCo Senior Green Bond, which was issued under the 144A / Reg S format.
AGEL, a subsidiary of Adani Group, has one of the world's largest renewable portfolios, with up to 19.8 GW of locked-in growth across operating, under-construction, awarded, and acquired assets catering to investment-grade counterparties. Solar Energy Corporation of India (SECI), NTPC, and different state discoms (distribution companies) are among AGEL's key customers.
The Adani Group's renewable energy arm secured a $1.35 billion revolving construction framework deal for senior loan funding of construction stage projects earlier in 2021. Vneet S Jaain, MD and CEO, AGEL said: "This ListCo Senior Green Bond issuance is yet another landmark transaction for AGEL and fully funds our pipeline of projects."
Jaain also added that the AGEL is committed to expanding its reach and becoming the world's largest renewable energy provider by 2030.
The most recent bond issue, which was 4.7 times oversubscribed, has a fixed yield of 4.375 per cent. The bonds have been given a Ba3 (Stable) rating by Moody's Investors Service, which is the bond credit rating business of Moody's Corporation.
According to an official statement: "The funds shall be utilised towards equity funding of the capex for underlying renewable projects under construction by AGEL. Under the structure, AGEL can draw up to $1,700 million (including the present issuance) over the course of time subject to the covenants of the structure."
It was also said that AGEL has completed the third step of its capital management plan with this $750 million ListCo offering and now has a fully financed debt, as well as an equity programme for its stated aim of 25 GW by 2025.
The CEO of AGEL said: "The 4.7X oversubscription of this issuance is testimony of the confidence of global investors in the world's fastest-growing renewable energy platform and Adani's capability to set up a world-class clean energy business."
AGEL's green framework has been endorsed by Vigeo Eiris, a subsidiary of Moody's Investor Service and KPMG has provided independent assurance on the same. Additionally, the list of joint lead managers (JLMs) to the Issuance include names like Axis Bank, DBS Bank Ltd., Barclays, BNP Paribas, Emirates NBD Capital, IMI-Intesa Sanpaolo, MUFG, Mizuho Securities, SMBC Nikko and Standard Chartered Bank.
Linklaters and Talwar Thakore & Associates represented the JLMs. Latham & Watkins and Cyril Amarchand Mangaldas represented the issuer. As per AGEL, the principal green structuring advisor was MUFG Bank and the co-green structuring advisor was Standard Chartered Bank.
However, AGEL has grown rapidly in line with the Adani Group's energy mix transition, demonstrating the strength of the company's clean energy business model and commitment to global ESG benchmarks. It adheres to the United Nations Sustainable Development Goals, the United Nations Global Compact and the Science Based Targets Initiative's guiding principles. AGEL will also follow worldwide disclosure best practices, such as the TCFD recommendations, GRI standards and CDP disclosures.
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