Adani Green fully redeems $750 mn Holdco Notes with cash, reserves

Adani Green Energy Ltd (AGEL) has fully redeemed all outstanding $750 million, 4.375% Holdco Notes due on September 8, 2024, through a fully funded redemption reserve account maintained since January 2024. The three-year Holdco Notes were issued in September 2021 to support its "high-growth" objectives.

In January 2024, the company announced to fully backstop the Holdco Notes through a fully funded redemption reserve account maintained eight months before the redemption date to “facilitate” the full redemption. The Adani Group company, in an exchange filing, said 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 emphasises the structured approach to accomplish credit metrics akin to investment grade profile for its underlying debt capital raise program," says Adani Green. 

The company says it is committed to having "capital market issuances tailored for long-term infra asset class supported through the predictable and robust cashflow stream to attain 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 cashflows and the available construction facility pool," the company adds.

Additionally, the company said its promoters had agreed to subscribe to a preferential warrant amounting to ₹9,350 crore in December 2023, of which ₹7,013 crore will be available with AGEL to fund any accelerated capital expenditure requirements.  

Adani Green develops, owns, and operates utility-scale grid-connected solar, wind, hybrid, and hydro-pumped storage renewable power plants. It currently has an operating renewable portfolio of 11.2 GW, the largest in India, spread across 12 states. It has an installed capacity of 10.9 GW, and another 11 GW is under construction as of March 2024. 

It has set a target of achieving 50 GW by 2030. Adani Green says its "strong cashflows" of operational assets and the construction facility framework agreement fully fund the overall capex programme to achieve 50 GW capacity by FY30. 

Adani Green Energy shares are trading 0.21% up at ₹1,868.90 on the BSE today. At the current share price, the company's m-cap stands at ₹2,96,039.83 crore.

For the first quarter ended June 30, 2024, Adani Green posted a 38% year-on-year (YoY) growth in its consolidated net profit at ₹446 crore compared to ₹322 crore a year ago. Revenue from operations jumped 31% YoY to ₹2,834 crore, from ₹2,162 crore in the same period last year. Revenue from the power supply increased 24% YoY to ₹2,528 crore in Q1 FY25 as against ₹2,045 crore in the previous year quarter. EBITDA from power supply rose 23% YoY to ₹2,374 crore, while margin improved marginally to 92.6% from 92.5% in the corresponding period last year.