Adani Electricity Mumbai Limited (AEML)has raised $300 million through green bonds as a part of its $2 billion global medium-term notes program.The announcement marks the first-ever global medium-term notes program by an energy utility player in India. Thebond also generated massive global interest as it was oversubscribed 9.2 times. Investors from Asia formed the majority with 49 per cent, followed by 27 per cent from Europe, Middle East, and Africa while North America comprised 24 per cent.The transaction was settled on July 22, 2021. The funds will now be used to refinance existing debt and regulatory asset development to enable asset hardening.
The global medium-term notes program and the sustainability-linked bond issuance are part of AEML’s capital management plan. Axis Bank, Barclays, Citigroup, DBS Bank, Deutsche Bank, Emirates NBD Capital, JP Morgan, Mizuho Securities, Mitsubishi UFJ Financial Group (MUFG), and Standard Chartered Bank were the joint lead managers to the transaction.MUFG was the sole sustainability-linked bond structuring advisor.
In June 2019, Adani Green Energy Limitedraised $500 million through green bonds. The bonds are listed on the Singapore Exchange Securities Trading Limited and the India International Exchange Limited. The proceeds was set to be utilized to repay its respective external commercial borrowing loans, and the balance of the net proceeds for capital expenditure and other project-related liabilities.