The move by Adani Green Energy Limited is in step with its January announcement of a plan to redeem the $750 million worth of notes, eight months ahead of the redemption date.
| Photo Credit: The Hindu

Adani Green Energy Limited (AGEL), the renewable energy arm of the ports-to power conglomerate run by billionaire Gautam Adani, on Monday (September 9, 2024) said it has redeemed $750 million worth of bonds as it deleverages business.

In a statement, the firm said it has completed “redemption of all outstanding $750 million 4.375% Holdco Notes due on September 8, 2024.” The move is in step with its January announcement of a plan to redeem the $750 million worth of notes, eight months ahead of the redemption date.

Adani Green Energy Q1 profit up nearly 95% to ₹629 crore

Issued in September 2021, the three-year Holdco Notes supported AGEL’s high-growth objectives. During the period, AGEL’s capacity has increased more than three-fold — from 3.5 gigawatt (GW) to 11.2 GW, registering a CAGR (compounded annual growth rate) of 48%.

The company had in January stated it would pay $169 million from its reserves and internal accruals, and $300 million from the consideration from a joint venture with TotalEnergies Renewables. The remaining $281 million was to come from the initial tranche from a preferential issue of warrants.

That funding was completed with the receipt of the funds under the preferential allotment of ₹9,350 crore ($1.12 billion) to the promoters of the company.

“AGEL’s overall capital management philosophy has remained focussed on long-term value creation through asset development and positioned AGEL as a self-propelled growth engine. It also emphasises the structured approach to accomplish credit metrics akin to investment grade profile for its underlying debt capital raise programme,” the firm said in the statement on Monday (September 9, 2024.)

With this, AGEL is committed to having capital market issuances tailored for long-term infra asset classes supported through the predictable and robust cash flow stream to attain a long curve emulating underlying asset life.

“Over the years, the Capital Management Plan has matured to allow AGEL to have a ‘seasoned’ portfolio with a superior operational asset base supporting the under-construction development. With surplus cash from operating assets augmenting the under-construction projects’ requirement, AGEL’s overall capex programme remains fully funded with such operational assets cash flows and the available construction facility pool,” it said.

In addition, AGEL’s promoters had agreed, in December 2023, to subscribe to a preferential warrant amounting to ₹9,350 crore, out of which, ₹7,013 crore ($835 million equivalent) shall be available with AGEL to fund any accelerated capital expenditure requirements.

“AGEL thanks its investors and lenders for their confidence and its vendor partners, including Adani Infra (India) Limited and Adani Infra Management Services Limited, for their continuous support in achieving the accelerated growth plan, putting AGEL on track to achieve 50 GW of renewable energy capacity by 2030,” it added.

AGEL is India’s largest renewable energy company and develops, owns, and operates utility-scale grid-connected solar, wind, hybrid, and hydro-pumped storage renewable power plants. AGEL currently has an operating renewable portfolio of 11.2 GW, the largest in India, spread across 12 States.

The company has set a target of achieving 50 GW by 2030, aligned to India’s decarbonisation goals.

Ahmedabad (Gujarat):

Adani Green Energy Limited (AGEL) and TotalEnergies have announced the formation of a joint venture (JV), equally owned by both partners, to manage a portfolio of 1,150 MW solar projects.

According to Adani Renewables, these projects are part of the world’s largest renewable energy plant located in Khavda, Gujarat. AGEL will contribute its existing assets to the JV, while TotalEnergies will invest USD 444 million to accelerate the development of these projects.

This investment highlights AGEL and TotalEnergies’ commitment to strengthening their collaboration and supporting India’s transition to clean energy. It also demonstrates AGEL’s proven ability to deliver green energy rapidly and at scale.

The electricity generated from these 1,150 MW solar projects will be sold through Power Purchase Agreements (PPAs) with the Solar Energy Corporation of India (SECI) and on the wholesale market. AGEL is developing the world’s largest renewable energy plant on a barren wasteland in Khavda, Gujarat, covering an area of 538 square kilometers–five times the size of Paris.

AGEL has already operationalized 2,250 MW of solar and wind energy capacity at the site. Once completed, the plant will provide affordable clean energy to over 16 million homes in India, create more than 15,200 green jobs, and avoid approximately 58 million tons of CO2 emissions annually.

The signing and completion of this transaction are subject to customary closing conditions, including regulatory approvals.

Adani Green Energy Limited (AGEL) is one of the largest renewable companies in India, with a current project portfolio of 20,434 MW. According to the company website, the company develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects driven by the Adani Group’s philosophy of ‘Growth with Goodness’,. The electricity generated is supplied to central and state government entities and government-backed corporations. The company has a portfolio of 54 operational projects and 12 projects under construction.

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