Adani Green Energy Redeems USD 750 Million Holdco Notes

Adani Green Energy Ltd. (AGEL) has redeemed USD 750 million Holdco Notes due in September 2024, reflecting its strong financial strategy. The move supports AGEL’s growth plans to reach 50 GW renewable capacity by 2030 through robust asset development.

September 10, 2024. By EI News Network

Adani Green Energy Ltd. (AGEL) has successfully redeemed all outstanding USD 750 million 4.375 percent Holdco Notes, which were due on September 8, 2024. This marks the completion of a crucial financial commitment made by the company earlier this year.

In January 2024, AGEL announced plans to fully backstop the Holdco Notes through a dedicated redemption reserve account. This account, funded eight months before the redemption date, ensured the full redemption of the notes upon maturity in compliance with applicable regulatory guidelines.

The Holdco Notes, issued in September 2021 with a three-year tenure, played a significant role in supporting AGEL's rapid expansion. Over the period, AGEL’s renewable energy capacity has grown more than threefold, from 3.5 GW to 11.2 GW, reflecting a compound annual growth rate (CAGR) of 48 percent. This growth aligns with the company's long-term strategy of value creation through asset development.

AGEL's capital management philosophy is centered around maintaining robust credit metrics akin to an investment-grade profile for its debt capital raise program. The company remains committed to structuring its capital market issuances to align with the long-term nature of infrastructure assets, supported by a stable and predictable cash flow stream. This approach ensures that the financing reflects the underlying asset's lifespan.

The maturation of AGEL's Capital Management Plan has led to a well-seasoned portfolio, characterised by a strong base of operational assets. These assets not only support ongoing construction projects but also generate surplus cash that is reinvested into future developments. As a result, AGEL's capital expenditure program remains fully funded through a combination of cash flows from operational assets and an available construction facility pool.

In December 2023, AGEL's promoters reinforced their support by agreeing to subscribe to a preferential warrant amounting to INR 9,350 crore. Of this, INR 7,013 crore (equivalent to USD 835 million) has been earmarked to fund accelerated capital expenditure if required, further strengthening AGEL's financial position.

In its press note, AGEL expressed gratitude to its investors and lenders for their unwavering confidence and acknowledged the support of vendor partners, including Adani Infra (India) Ltd. and Adani Infra Management Services Ltd., in achieving its accelerated growth plans.

Furthermore, the firm claimed in its note that, with this momentum, AGEL is well-positioned to achieve its target of 50 GW of renewable energy capacity by 2030.

Tags:

Adani Infra Management Services Ltd

CAGR

Compounded annual growth rate

AGEL RE capacity 2030