Gautam Adani Raises Rs 9800 Cr To Fund Adani Green's Renewable Projects In India

The company has signed definitive agreements for a debt package for its under-construction renewable asset portfolio with a group of leading international lenders, the company said in a statement. 

Gautam Adani | File Image

In a bid to fund a 1.69 GW hybrid portfolio of solar and wind renewable projects to be set up in four SPVs in Rajasthan, Gautam Adani led Adani Green Energy Limited (AGEL) has raised a $ 1.35 billion debt (Rs 9800 crore) from a consortium of global lenders. 

The company has signed definitive agreements for a debt package for its under-construction renewable asset portfolio with a group of leading international lenders, the company said in a statement. 

As per the agreement, 12 international banks - Standard Chartered Bank, Intesa Sanpaolo S.p.A, MUFG Bank, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank U.A., DBS Bank Ltd., Mizuho Bank, Ltd., BNP Paribas, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V committed for the facility which will be the first certified green hybrid project loan in India. 

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The new liquidity pool strengthens AGEL's strategy to fully fund its under-construction asset and augurs well for its vision of scaling capacity to 25 GW by 2025. 

Commenting on the deal, Vneet S Jaain, CEO, AGEL, said, "We see this as yet another validation of our execution ability in the renewable space. We are committed to producing the least expensive green electron and the pace and scale we have embarked on put us well ahead on this path. We believe that establishing depth and diversity in our funding resources is critical for AGEL's vision to become the largest renewable player in the world. The banks that have committed to this strategic transaction are our key partners in ensuring seamless access to global capital for our underlying renewable asset portfolio." 

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According to AEGL, the definitive agreement sets out a financing framework of agreed principles and procedures under which AGEL shall engage with the financiers to raise financing efficiently and expeditiously for all the future projects as per the agreed threshold parameters.

"The facility will also ensure capital recycling needs of the banks and make the same capital available for future projects of AGEL. This revolving nature of the facility will help AGEL to achieve its goal of a 25GW portfolio by 2025. In addition, it positions AGEL well to capture growth in the attractive Indian renewable sector," Jaain added. 

AEGL's Growth:

With over 14,815 MW of running, under construction, and awarded projects catering to investment-grade counterparties, AGEL, a subsidiary of India's Adani Group, has one of the largest global renewable portfolios.

AGEL, which went public in 2018, has a market capitalization of $24 billion and is helping India achieve its COP21 targets.

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The Adani Group was named the number 1 global solar power generation asset owner by Mercom Capital, a US-based think tank, this financial year.

According to Bloomberg's Billionaires List, with a fortune of $49.4 billion as of March 18, Gautam Adani is ranked the world's 26th most prosperous. He has so far added $15.6 billion to this net worth this year, more than any billionaire, including Jeff Bezos, Elon Musk, or Mukesh Ambani. 

AGEL shares were trading down 1.6% at Rs 1144.9 in a weak Mumbai market on Thursday, valuing the company at Rs 1,79,064 crore.