Adani Green Energy (AGEL) announced a follow-on funding of a $1.36 billion senior debt facility as part of its construction financing framework, enhancing the pool to $3 billion since the initial project financing.

The financing will be a key enabler in developing a 2,167 MW renewable energy park in Khavda, Gujarat. The park is expected to accelerate the company’s vision of 45 GW operating capacity by 2030.

The definitive agreements have been executed with eight leading international banks, which are returning lenders instrumental in establishing AGEL’s construction financing framework since March 2021.

The green loan facility was extended by a consortium of lenders, which include– BNP Paribas, Coöperatieve Rabobank U.A., DBS Bank, Intesa Sanpaolo S.p.A., MUFG Bank., Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.

AGEL had raised a $1.35 billion debt package for its under-construction renewable asset portfolio, which saw participation from 12 international banks and was then the country’s first green hybrid project loan.

“The extension of the construction financing framework to $3 billion is a historic landmark and will boost the development of the Khavda site, which is poised to become the world’s largest Renewable Energy Park with a generation capacity of 17 GW. It will be a catalyst in the accelerated completion of the development activities at the project site,” said Vineet JS Jaain, Managing Director of AGEL.

Based on AGEL’s alignment with core components of green loan principles and the sustainability quality of the asset pool, the facility is also certified by second-party opinion provider Sustainalytics.

DBS Bank, MUFG Bank, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation acted as Co-Green structuring banks. Cooperatieve Rabobank U.A. acted as a Documentation and Structuring Bank, and MUFG Bank acted as a Guarantee structuring bank.

Latham & Watkins and Saraf & Partners were the borrower’s counsel. The lenders’ counsel were Linklaters and Cyril Amarchand Mangaldas.

With a total operational renewable capacity of 8,316 GW, AGEL generated a revenue of $282 million from the sale of energy in the second quarter of 2023. This was an 80% year-over-year increase from $132.7 million.