Adani Green Energy raises $750 million through green bonds

Adani Green Energy Limited (AGEL) issued its first ListCo senior green bond, raising $750 million. The bonds will have a three-year tenor at a rate of 4.375 percent. The funds will be used to pay the equity part of capital expenditures for renewable energy projects that are currently under construction by AGEL. It can draw up to $1.7 billion throughout the term if the structure is agreed upon. The notes were given a Ba3 (stable) grade by Moody’s.

The bond issuance was oversubscribed 4.7 times. AGEL has now completed the final step of its capital management plan with its recent issue. Further, it has a fully financed debt and equity programme to reach its stated objective of 25 GW by 2025. The joint lead managers 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.

Earlier this year, AGEL raised a debt package of Rs 97.93 billion for its under-construction renewable asset portfolio. In 2019, Adani Green issued dollar-denominated 20-year senior secured green bonds  to generate $362.5 million. The notes will pay 4.625 percent per year in interest. The proceeds of the issuance were to be utilised to pay down their foreign currency debts and rupee borrowings, respectively.

In July 2021, Adani Electricity Mumbai Limited, 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.

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