Adani Green Energy Subsidiaries Raise ₹6.12 Billion for Debt Refinancing

The proceeds from the NCDs will be utilized to part-refinance existing rupee term loans

February 4, 2022


Three subsidiaries of Adani Green Energy (AGEL) – Adani Green Energy (UP), Prayatna Developers, and Parampujya Solar Energy have raised ₹6.123 billion (~$82.04 million) by their maiden domestic bond issuance on a private placement basis.

According to the company statement, the rated, listed, secured, and redeemable non-convertible debentures (NCDs) of the face value of Rs ₹1 million (~$13,383.55) each, in multiple series, have an average annualized coupon rate of 7.83% per annum, which is significantly lower than existing debt. The NCDs have a tenure of up to ~12 years.

The proceeds from the NCDs will be utilized to part-refinance an existing rupee term loan bearing a higher interest cost. 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 the Bombay Stock Exchange (BSE).

“Optimization of the cost of borrowing is key to our capital management program, and this transaction reinforces the company’s strategy. We are encouraged by the robust support from the finance community, which recognizes the strength of the company’s business model and our capital management approach. We could manage this fundraising at favorable terms. This puts the company on a more solid platform for long-term growth.”, said Vneet S Jaain, MD and CEO of Adani Green Energy.

The company believes 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 (UP), Prayatna Developers, and Parampujya Solar Energy collectively have 930 MW of operational solar power projects.

AGEL generated ₹26.55 billion (~$355.04 million) as revenue from the power supply in the first nine months (9M) of the financial year (FY) 2022, a 56% increase compared to ₹24.74 billion (~$330.83 million) compared to last year.

Recently AGEL signed a purchase power agreement (PPA) with the Solar Energy Corporation of India (SECI) to supply 4,667 MW of green power. The agreement is part of a manufacturing-linked solar tender of 8,000 MW awarded to AGEL by SECI in June 2020. So far, AGEL has signed PPAs with SECI for a total capacity of close to 6 GW. AGEL expects to close the remaining 2 GW in two to three months.

Last month, Adani Green Energy raised $750 million (~₹56.1 billion) by issuing its maiden ListCo senior green bond.