Adani Green Energy Fully Redeems $750 Million Holdco Notes

Issued in September 2021, the three-year Holdco Notes have supported Adani Green Energy's high-growth objectives

AGEL's overall capital management philosophy has remained focused on long-term value creation through asset development and positioned AGEL as a self-propelled growth engine.

Source : Adani Green Energy Ltd

Adani Green Energy Ltd (AGEL) completes redemption of all outstanding $750 million 4.375 per cent Holdco Notes due on 8 September 2024. This follows AGEL's announcement, in January 2024, to fully backstop the Holdco Notes through a fully funded redemption reserve account maintained eight months prior to the redemption date to facilitate full redemption of Holdco Notes upon maturity in compliance with applicable guidelines.

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

AGEL's overall capital management philosophy has remained focused 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.

With this, AGEL is committed to having capital market issuances tailored for long-term infra asset class supported through the predictable and robust cashflow stream to attain 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 program remains fully funded with such operational assets cashflows and the available construction facility pool. In addition, AGEL’s promoters had agreed, in December 2023, to subscribe to a preferential warrant amounting to Rs 9,350 crore, out of which, Rs 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) Ltd and Adani Infra Management Services Ltd, for their continuous support in achieving the accelerated growth plan, putting AGEL on track to achieve 50 GW of renewable energy capacity by 2030.