Adani Green secures $400 million funding for 750 MW power projects – EQ
In Short : “Adani Green secures $400 million funding for its 750 MW power projects, marking a significant milestone in advancing renewable energy infrastructure and supporting India’s clean energy goals.”
In Detail : The $400 million fund will support the completion and commissioning of these solar projects, with operations expected to begin from November 2024 onwards.
Funding will support completion of projects in Rajasthan, Gujarat
Consortium of five international banks provided the financing
AGEL currently operates a portfolio of 10,934 MW in India
Adani Green Energy Ltd (AGEL) successfully secured $400 million (approximately Rs 29,600 crore) on Thursday from a consortium of five leading international banks.
The funds will be used for its ongoing 750 MW solar power projects in Rajasthan and Gujarat.
It will support the completion and commissioning of these solar projects, with operations expected to begin from November 2024 onwards.
One of the key projects, located in Rajasthan, boasts a capacity of 500 MW and has a long-term power purchase agreement (PPA) in place with the Solar Energy Corporation of India (SECI).
The second project, situated in Gujarat’s Khavda region, is a 250 MW standalone merchant power project within the world’s largest renewable energy (RE) cluster.
The consortium of lenders includes Cooperative Rabobank UA, DBS Bank Ltd, Intesa Sanpaolo SpA, MUFG Bank Ltd, and Sumitomo Mitsui Banking Corporation.
This financing arrangement is an important step forward for the renewable energy arm of the Adani Group, ambitious growth plans within the renewable energy sector.
The $400 million construction facility, combined with tailored funding solutions, incorporates a syndicated guarantee-backed assurance program, aligning with AGEL’s strategic procurement initiatives. This transaction establishes a sustainable debt structure integral to AGEL’s capital management strategy, specifically addressing financing for merchant exposure.
In a press statement, AGEL said that this milestone holds importance for India’s renewable energy sector, enabling the industry’s evolution towards enhanced market integration and the delivery of cost-effective green energy.
“It marks a milestone for the Indian RE sector as it steers the industry’s transition to the next phase of market integration, with the commitment to deliver the low-cost green electrons through the promotion of merchant market projects with the right financing structure…,” said AGEL in a press release.
The green loan, facilitated through AGEL’s subsidiaries, supports the company’s expansion goals and underscores its commitment to sustainable practices. Sustainable Fitch, a second-party opinion provider, acknowledged the robustness and transparency of AGEL’s 750 MW solar projects Green Loan Framework, highlighting alignment with the Green Loan Principles of 2023.
This assessment reflects AGEL’s steadfast dedication to renewable energy solutions, advancing India’s journey towards a lower carbon future and aligning with the UN Sustainable Development Goals (SDGs), particularly SDG 7 (affordable and clean energy).
AGEL currently operates a 10,934 MW portfolio, the largest in India’s renewable energy landscape, contributing reliable, affordable, and clean power to the national grid.
This operational portfolio includes 7,393 MW of solar, 1,401 MW of wind, and 2,140 MW of wind-solar hybrid capacity.
Legal counsel for this financing transaction was provided by Latham & Watkins LLP and Saraf & Partners for the borrower, while Linklaters and Cyril Amarchand Mangaldas represented the lenders.
