Adani Green Energy Limited (AGEL) has successfully concluded the financing for the $750 million Holdco notes due on September 9, 2024. The funds were received through a preferential allotment of Rs 93.5 billion to AGEL’s promoters. The preferential allotment received approval from AGEL shareholders, with 99.9 per cent majority on January 18, 2024. Subsequently, the promoters injected a primary infusion of Rs 23.38 billion into AGEL last week. AGEL has allocated the funds to the senior debt redemption account (SDRA) and additional reserve accounts associated with the Holdco notes. Following this allocation, the completion of funding for the reserves has been achieved.
The funding status is detailed as follows: TotalEnergies joint venture (JV) proceeds with $300 million deposited into the SDRA on January 3, 2024. Promoter Preferential Allotment with $281 million contributed to the SDRA on January 25, 2024. Moreover, accumulated balance in the reserve account for debt service, hedge reserves, and interest worth $169 million.
With this, the complete amount designated for bond redemptions has been securely placed in dedicated accounts through term fixed deposits. These funds are earmarked exclusively for the redemption of the Holdco notes. In accordance with Clause 4.6 (b) (i) of the project account deed, withdrawals from this account are restricted to the repayment, prepayment, or acquisition of any senior debt, including the principal amount that is both due and payable as per the document. The bond has been defeased, achieving this status 8 months before the maturity date of the Holdco notes.
The repayment is supported by the effective equity capital raise initiative amounting to $1.425 billion. This includes $1.125 billion from the preferential issuance by promoters and $300 million from the TotalEnergies JV.
