Adani Green Energy Redeems $750 Million Bonds Ahead of Schedule
Adani Green Energy Ltd (AGEL), a subsidiary of the Adani Group, has redeemed $750 million worth of bonds eight months ahead of schedule. This move is part of the company's deleveraging strategy and aligns with its January announcement.
The redeemed bonds were issued in September 2021 and supported AGEL's rapid growth. During this period, the company's capacity tripled from 3.5 gigawatts (GW) to 11.2 GW, achieving a 48% compounded annual growth rate (CAGR).
$169 million from reserves and internal accruals
$300 million from a joint venture with TotalEnergies Renewables
$281 million from a preferential issue of warrants
The company's capital management strategy focuses on long-term value creation through asset development and maintaining a self-propelled growth engine. AGEL aims to achieve investment-grade credit metrics for its debt capital raise program.
With this redemption, AGEL is committed to tailoring its capital market issuances for long-term infrastructure assets. The company's predictable and robust cash flow stream supports a long curve emulating the underlying asset life.
AGEL's capital management plan has matured, resulting in a seasoned portfolio with a strong operational asset base supporting its development projects. Surplus cash from operating assets augments the funding requirements for under-construction projects, ensuring full funding for the company's capex program.
In December 2023, AGEL's promoters agreed to subscribe to a preferential warrant amounting to Rs 9,350 crore. Of this amount, Rs 7,013 crore ($835 million equivalent) will be available to AGEL to fund any accelerated capital expenditure requirements.
AGEL expresses its gratitude to its investors, lenders, and vendor partners for their continued support in achieving its accelerated growth plan. The company remains on track to achieve its target of 50 GW of renewable energy capacity by 2030.
As India's largest renewable energy company, AGEL develops, owns, and operates utility-scale grid-connected solar, wind, hybrid, and hydro-pumped storage renewable power plants. The company currently has an operating renewable portfolio of 11.2 GW, the largest in India, spread across 12 states.