Adani Green Energy announced on Thursday it secured funding worth $400 million for its 750 MW power projects in Rajasthan and Gujarat. The company received funding from a consortium of five international banks.
The solar projects include a 500 MW venture in Rajasthan which has a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI), and a 250 MW capacity standalone merchant power project. The latter is being developed at the RE cluster at Khavda in Gujarat.
The lenders include Cooperative Radobank U.A., DBS Bank Ltd, Intesa Sanpaolo S.p.A., MUFG Bank Ltd, and Sumitomo Mitsui Banking Corporation.
“With confidence in the evolving merchant energy market, AGEL is diversifying revenue streams, along with traditional PPAs, to enhance project revenue and position itself favorable for sustained value creation,” the renewable energy firm said.
The firm currently has an operational capacity of 10,934 MW, and delivers renewable energy to the national grid. It includes a capacity of 7,393 MW of solar power, 1,401 MW of wind power, and a wind-solar hybrid power capacity of 2,140 MW. The company noted that this funding will help boost financing merchant exposure.
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The company informed that Sustainable Fitch, second party opinion provider certified the facility as a ‘green loan’. The energy firm said that the entity ‘highlighted the robustness and transparency of the 750 MW Solar Projects Green Loan Framework and alignment with the four core components of the Green Loan Principles, 2023’.
Latham & Watkins LLP and Saraf & Partners acted as the borrower’s counsel, while Linklaters and Cyril Amarchand Mangaldas were the lender’s counsel.
“The assessment favours AGEL’s dedication to green energy solutions, accelerating India’s transition towards a lower carbon future while achieving UN Sustainable Development Goals (SDGs), especially SDG 7 (affordable and clean energy),” the company added.