Adani Green Raises $362.5 Million Through Issuance of Green Bonds

The proceeds from the issue are expected to be used by Adani subsidiaries to pay off their existing loans and meet other capital expenditure


Adani Green Energy Limited (AGEL) has announced that its subsidiaries, Adani Renewable Energy Limited, Wardha Solar (Maharashtra), and Kodangal Solar Parks Private Limited, have approved the issuance of dollar-denominated 20-year senior secured green bonds amounting to $362.5 million. 

In a filing with the Bombay Stock Exchange, Adani Green has added that the companies intend to use the proceeds from the issue to repay their respective foreign currency loans and rupee borrowings. Further, the balance of the net proceeds is expected to be used for capital expenditure and other project related liabilities.

The notes are expected to be listed on the Singapore Exchange Securities Trading Limited (SGX- ST). The date of allotment and maturity of the issue will be October 15, 2019, and October 15, 2039, respectively.

The notes will bear interest at the rate of 4.625% per annum, payable semi-annually in arrears on 15th April and 15th October in each year.

The issue has received the following credit ratings: Moody’s: (Baa3 EXP), Fitch Ratings (BBB- EXP), and S&P (BBB- EXP).

In June 2019, Adani Green had announced that it would soon raise $500 million through green bonds.

Mercom recently reported that AGEL’s financial statement shows that for FY 2019, its revenue stood at ₹20.58 billion ($295 million) from the earlier ₹14.8 billion ($212 million), up 39% year-over-year (YoY). While just in the fourth quarter, the revenues saw a rise of 68% compared to the same quarter of 2018.

Earlier, AGEL had announced the acquisition of a 51% equity share capital in Kodangal Solar Parks Private Limited (KSPPL), comprising a 20 MW solar project which was incorporated back in August 2015.

Last year, Adani Green had incorporated a wholly-owned subsidiary company Adani Wind Energy (GJ) Limited (AWEGL). It also acquired a 100% stake of Adani Green Energy Pte Ltd (AGEPteL) from its Group firm Adani Global Pt Ltd. The purpose of the acquisition of AGEPteL is to make it an investment arm of Adani Green Energy for international renewable businesses. AGEPteL was incorporated in March 2017 for investment in foreign markets.

According to Mercom’s India Solar Project Tracker, AGEL has installed solar PV capacity of nearly 2 GW and 1.7 GW of solar PV projects under various stages of development.

Several Indian companies have launched green bonds during this year. Recently, another domestic renewable company, Urja Global Limited, announced that it had received the approval to raise green bonds of up to $500 million (₹35.64 billion) to finance renewable projects and electric vehicles.

Previously, Azure Power Solar Energy Private Limited announced that it would issue a green bond offering of $350 million (~₹25 billion). The bond is expected to mature in 2024 with an expected US Dollar coupon of 5.65%.

Shaurya is a staff reporter at with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.