Adani Green Refinances Debt With $1.06 Billion To Construct Renewable Energy Project In Rajasthan – EQ
In Short : Adani Green Energy refinanced its $1.06 billion construction loan to develop India’s largest solar-wind hybrid project in Rajasthan. The new 19-year financing structure aligns with the project’s lifespan, ensuring long-term stability. Despite challenges, including scrutiny over a U.S. indictment, Adani Green remains committed to expanding its renewable portfolio, targeting 50 GW capacity by 2030.
In Detail : Adani Green Energy Ltd on Monday announced that it has completed the refinancing of its first construction facility. With an outstanding of $1.06 billion taken in 2021, the company will utilise the facility to develop the country’s largest solar-wind hybrid renewable cluster in Rajasthan.
The company said that the long-term financing it raised for refinancing has a door-to-door tenor of 19 years with a fully amortised debt structure emulating the underlying asset life.
“With this breakthrough, AGEL has successfully completed its capital management program for the underlying asset portfolio, which involves securing long-term facilities that are perfectly aligned with the cash flow lifecycle of that portfolio. The framework of this program provides significant benefits through deep access to diverse pools of capital, securing large sums with long duration,” the company said.
Adani Green noted that this approach would help enhance the financial stability of the firm and also ensure that it is able to continue on its growth trajectory and ‘deliver sustainable value creation to its stakeholders’.
The refinancing facility received a rating of AA+/Stable from three domestic rating agencies, namely the ICRA, India Ratings, and CareEdge Ratings.
Adani Green Energy deals in developing, owning, and operating utility scale grid-connected solar, wind, hybrid, and hydro pumped storage renewable power plants. Currently, the company has an operating renewable portfolio of 12.2 GW across 12 states.
The company intends to achieve the capacity of 50 GW by 2030 in line with the nation’s decarbonisation goals. Currently, Adani Green is engaged in developing the world’s largest renewable energy plant (30 GW) on the wasteland of Khavda, Gujarat, covering an area of 538 square kilometres. The firm said its portfolio is ‘certified ‘water positive for plants of more than 200 MW capacity’, ‘single-use plastic free’ and ‘zero waste-to-landfill’.
