Adani Green Energy Secures Long-term Refinancing For $1 Bn Renewable Project – EQ
In Short : Adani Green Energy has secured long-term refinancing of $1 billion for its renewable energy projects, marking a significant step in bolstering its financial stability and expansion plans. The funding will support the development of its renewable energy portfolio, including solar and wind projects, reinforcing its commitment to India’s clean energy transition and sustainability goals. This move highlights investor confidence in Adani Green Energy’s growth trajectory and the renewable energy sector’s potential.
In Detail : Adani Green Energy Ltd (AGEL) has successfully refinanced a USD 1.06 billion construction facility with long-term financing to support its solar-wind hybrid renewable energy cluster in Rajasthan. The company originally secured the construction facility in 2021 to develop what is now India’s largest hybrid renewable energy project.
In a statement, AGEL confirmed that the refinancing facility has a door-to-door maturity of 19 years, featuring a fully amortized debt structure designed to align with the lifespan of the underlying assets.
This move strengthens the financial stability of the project by replacing short-term construction debt with a more sustainable funding framework.
Investment firm Nomura, in a note to investors, estimated the weighted-average life of the new financing at 10.5 years. The funding cost is projected to be around 9.2 per cent in rupee terms, with a possible 25-basis-point reduction upon securing an onshore issue rating.
