AGEL secures $205.30 million to refinance debt

Adani Green Energy Limited (AGEL) has raised a project loan facility of $205.31 million through its subsidiary Adani Solar Energy AP Six to support refinancing its debt. The facility comprises amortising project loans. It will have a 16-year debt structure with a tenure of ten years. AGEL’s association with its two core relationship banks, MUFG Bank and Sumitomo Mitsui Banking Corporation is supportive of the same.

According to the company, the refinancing facility is consistent with its strategy of securing long-term financing in order to establish the debt structure in accordance with the underlying life of its operational assets. The facility is linked to a Japanese benchmark rate gauge – the Tokyo Overnight Average Rate and its near-zero yields highlight the appeal of diversifying alternative capital pools that offer relatively competitive interest rates.

Recently in December 2022, AGEL inaugurated its third wind-solar hybrid power plant in Jaisalmer, Rajasthan. This hybrid power plant has a combined operational generation capacity of 450 MW. The plant has a 25-year power purchase agreement with SECI at Rs 2.67 per kwh.