Adani Green Energy Ltd (AGEL) has extended its construction financing framework to $1.64 billion by raising a $288 million facility for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders. The loan comes under the category of a certified green hybrid project loan. As per the definitive agreements, seven international banks have committed for the facility. These include BNP Paribas, Coöperatieve Rabobank U.A., Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.
The facility is initially to finance the 450 MW hybrid portfolio of solar and wind renewable projects being set up in Rajasthan by AGEL. The facility is also certified by Second Party Opinion provider ISS ESG based on AGEL’s sustainable strategy, alignment with Green Loan Principles and sustainability quality of the asset pool, with ‘very high’ transparency standards and significant contributions to SDG 7 (affordable and clean energy) and SDG 13 (climate action).
AGEL has set a target of achieving 45 GW renewable energy capacity by 2030, representing 10 per cent of the Government of India’s 450GW countrywide renewable energy target. The facility is in line with AGEL’s strategy to fast-track the development of its under-construction asset portfolio in sync with accelerating the energy transition. In March 2021, AGEL had also closed a $1.35 billion construction revolver facility in one of Asia’s largest project financing deals.