Adani Green Completes Funding Of Reserves For $750 Million Holdco Bond

Adani Green has set aside the funds in the Senior Debt Redemption Account and other reserve accounts of the Holdco Notes, post which the funding of the reserves has been completed

The entire bond redemptions are fully set aside in the respective accounts by way of term fixed deposits which can be utilised only for the redemption of the Holdco Notes.

Source : Adani Green Energy Ltd

Gautam Adani-led Adani Group's Adani Green Energy Limited (AGEL) has completed the funding for the $750 million 4.375 notes due September 9, 2024 (Holdco Notes) with the receipt of the funds under the preferential allotment of Rs 9,350 crore ($1,125 million) to the promoters of AGEL, according to a release by the company. The shareholders of AGEL, approved the preferential allotment with overwhelming 99.9 per cent majority on January 18, 2024 and thereafter the promoters funded Rs 2,338 crore ($281 million) primary infusion into AGEL last week. AGEL has set aside the funds in the Senior Debt Redemption Account (SDRA) and other reserve accounts of the Holdco Notes, post which the funding of the reserves has been completed. 

Summary of the funding status:

Source of Fund	Amount ($ Million)	Status
TotalEnergies JV Proceeds	300	Funded in SDRA on 03 January 2024
Promoter Preferential Allotment	281	Funded in SDRA on 25 January 2024
Debt Service Reserve Account, Hedge Reserves and Interest on Reserve Account	169	Accumulated balance in Reserve Account
Total	750

With the above, the entire bond redemptions are fully set aside in the respective accounts by way of term fixed deposits which can be utilised only for the redemption of the Holdco Notes. According to Clause 4.6 (b) (i) of the Project Account Deed as summarized in Page 303 of the offering circular dated 01 September 2021 of HoldCo Notes, the withdrawl from this account can only be used “to repay, prepay or purchase any Senior Debt including the principal which is due and payable under the Document”. The bond stands defeased, 8 months prior to the maturity date of the Holdco Notes.

Underpinning the repayment is the successful equity capital raise program of $1.425 billion (includes $1.125 billion of preferential issuance by promoters and $300 million from TotalEnergies JV), reflecting the deep interest of long-term investors, strategic partners, coupled with unwavering promoter commitment to meet AGEL’s strategic priorities of achieving its target of 45 GW by 2030.