Adani Green Raises $750 M for Projects in Pipeline

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Adani Green Energy Ltd (AGEL) has priced its maiden ListCo senior issuance of $750 million through a 3-year issuance under the 144A / Reg S format, at a fixed coupon of 4.375%.

The issuance was oversubscribed by 4.7 times. This issuance establishes AGEL as India’s leading credit in the renewable sector with a robust and well defined capital management plan, said the company in an official statement.

The funds will be utilised towards equity funding of the capex for underlying renewable projects under construction by AGEL. Under the structure, AGEL can draw upto $1,700 million (including the present issuance) over the course of time subject to the covenants of the structure. The notes were rated Ba3 (Stable) by Moodys.

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Earlier in the year, AGEL had completed the tie-up of a USD 1.35 Bn revolving construction framework arrangement for senior debt funding of construction stage projects. With this USD 750 Mn ListCo issuance, AGEL has completed the final phase of its capital management plan, and now has a fully funded program for both debt and equity for its stated target of 25 GW by 2025.

“The 4.7X oversubscription of this issuance is testimony of the confidence of global investors in the world’s fastest growing Renewable Energy platform and Adani’s capability to set up a world class clean energy business,” said Mr. Vneet S Jaain, MD and CEO, AGEL.

“This ListCo Senior Green Bond issuance is yet another landmark transaction for Adani Green Energy Ltd (AGEL) and fully funds our pipeline of projects and reinforces our commitment towards being a sustainability focused global infrastructure platform. We expect to further accelerate our footprint and are firmly on track to become the world’s largest renewable energy company by 2030.“

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AGEL states that top external agencies have provided assurance on its green framework. Vigeo Eiris, a subsidiary of Moody’s Investor Service, has provided a second party opinion endorsing AGEL’s green framework and KPMG has provided independent assurance on the same.

The joint lead managers (JLMs) to the Issuance were Axis Bank, Barclays, BNP Paribas, DBS Bank Ltd., Emirates NBD Capital, IMI-Intesa Sanpaolo, MUFG, Mizuho Securities, SMBC Nikko and Standard Chartered Bank. The JLMs were represented by Linklaters and Talwar Thakore & Associates.

The Issuer was represented by Latham & Watkins and Cyril Amarchand Mangaldas. MUFG Bank acted as lead green structuring advisor and Standard Chartered Bank acted as co-green structuring advisor.