Adani Green Energy fully redeems USD 750 Mn Holdco Notes

Adani Green Energy Ltd (AGEL) completes redemption of all outstanding USD 750 million 4.375% Holdco Notes due on 8thSeptember 2024.

This follows AGEL’s announcement, in January 2024, to fully backstop the Holdco Notes through a fully funded redemption reserve account maintained eight months prior to the redemption date to facilitate full redemption of Holdco Notes upon maturity in compliance with applicable guidelines.

Issued in September 2021, the three-year Holdco Notes have supported AGEL’s high-growth objectives. During the period, AGEL’s capacity has increased more than three-fold—from 3.5 GW to 11.2 GW, registering a CAGR (compounded annual growth rate) of 48%.

AGEL’s overall capital management philosophy has remained focused on long-term value creation through asset development and positioned AGEL as a self-propelled growth engine. It also emphasizes the structured approach to accomplish credit metrics akin to investment grade profile for its underlying debt capital raise program.

With this, AGEL is committed to having capital market issuances tailored for long-term infra-asset class supported through the predictable and robust cash flow stream to attain a long curve emulating underlying asset life.

Over the years, the Capital Management Plan has matured to allow AGEL to have a ‘seasoned’ portfolio with a superior operational asset base supporting the under-construction development. With surplus cash from operating assets augmenting the under-construction projects’ requirement, AGEL’s overall capex program remains fully funded with such operational assets cash flows and the available construction facility pool.

In addition, AGEL’s promoters had agreed, in December 2023, to subscribe to a preferential warrant amounting to INR 9,350 Cr, out of which, INR 7,013 Cr (USD 835 million equivalent) shall be available with AGEL to fund any accelerated capital expenditure requirements.