Adani Green announces refinancing plan for $750 mn Holdco Bond
Adani group's renewable energy arm Adani Green Energy Ltd (AGEL) has announced the redemption plan for the $750 million 4.375 notes due September 9, 2024 (Holdco Notes).
Adani Green Energy, in a stock exchange statement, says the outstanding amounts of the Holdco Notes will be fully secured through cash balances set aside as part of various reserve accounts securing the Holdco Notes, eight months prior to the maturity.
The company's $750 million redemption plan for the Holdco Notes includes amounts in the reserve accounts and internal accruals, TotalEnergies 1,050 MW JV consideration, and proceeds from the initial tranche of the promoter preferential allotment.
Also Read: Adani Ports to raise ₹5,000 cr via NCDs
The company says amounts in the reserve accounts and internal accruals stand at $169 million, including debt service reserve account, hedge reserves and interest on reserve account.
The TotalEnergies 1,050 MW JV consideration is worth $300 million, which was closed on December 26, 2023. The company says the funds are already lying in the senior debt redemption account (SDRA) of the Holdco notes.
On promoter preferential allotment, Adani Green Energy says $281 million, (USD equivalent of ₹2,338 crore), is expected at the end of January 2024, and the funds will be deposited into the senior debt redemption account (SDRA) of the Holdco notes.
"As a result, the entire amount of the $750 million Holdco Notes is fully secured eight months prior to its maturity date," says the company.
With this outcome, AGEL says it has fully defeased the Holdco Notes, eight months prior to the maturity date, and that it has further resulted in significant deleveraging in AGEL by way of equity proceeds while continuing to deliver on the growth plans.
The Adani company says the repayment has been successful on the back of the company's equity capital raise programme of $1.425 billion, which includes $1.125 billion of preferential issuance by promoters and $300 million from TotalEnergies JV. It, says the company, reflects "the deep interest of long-term investors, strategic partners, coupled with unwavering promoter commitment to meet AGEL’s strategic priorities of achieving its target of 45 GW by 2030".
AGEL develops, owns, and operates utility-scale grid-connected solar, wind and hybrid renewable power plants. With a locked-in growth trajectory of up to 20.6 Gigawatt (GW), AGEL currently has an operating renewable portfolio of 8.4 GW, which is spread across 12 states, offsetting over 41 million tonnes of CO2 emissions, cumulatively.
On December 27, 2023, Adani Green had announced the completion of the 1,050 MW joint venture (JV) with TotalEnergies. As part of the JV, TotalEnergies invested $300 million in the AGEL subsidiary, to acquire 50% stake in the projects.
The development took place after a binding JV agreement between AGEL and TotalEnergies in September 2023. The JV houses the 1,050 MW portfolio comprising a mix of already operational (300 MW), under construction (500 MW) & under development assets (250 MW), with a blend of both solar and wind power projects in India.
Adani Green Energy posted a 150% year-on-year (YoY) surge in its consolidated net profit to ₹372 crore in the second quarter ended September 30, 2023, as compared to ₹149 crore in the year-end period. The total income of billionaire Gautam Adani-led company jumped 53.7% to ₹2,589 crore in Q2 FY24, from ₹1,684 crore in the corresponding quarter last fiscal.
Amid the development, shares of Adani Green Energy closed 0.45% up at ₹1681.3 on the BSE.