Adani Green Ltd seals its biggest ever project financing of $1.36 billion

Adani Green Energy Limited (AGEL) announced to provide funding of $1.36 billion to boost its construction financing framework to $ 3 billion backed by a consortium of renowned international banks.

The green loan facility will help enable the development of AGEL, the world's largest renewable energy park, at Khavda in Gujarat.

The company, in a press release, stated, "The funding will help to develop 2,167 MW at Khavda in the initial stage and shall be the stepping-stone for the future development of the Khavda renewable site. The world's largest renewable energy park at Khavda will not only enable AGEL's vision of 45 GW operating renewable capacity by 2030 but will also play a critical role in India's net zero journey."

The press release further stated that agreements have been executed with eight international banks, which are all returning lenders and instrumental in establishing AGEL's Construction Financing Framework since March 2021. The green loan facility has been extended by a consortium of lenders which include BNP Paribas, Cooperative Rabobank UA, DBS Bank Ltd, Intesa Sanpaolo SPA, MUFG Ban, Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.

"The funding is an important element of AGEL's overall capital management plan and accelerated development program fostering accretive growth. AGEL's successful track record with the overall assurance structure of the construction framework are instrumental in securing the trust of the international lending community for the enhanced commitments," the release stated.

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Vineet S Jaain, managing director of Adani Green Energy Ltd, said, "The extension of Construction Financing Framework to $3 billion is a historic landmark and will boost the development of Khavda site, which is poised to become the world's largest Renewable Energy Park with the generation capacity of 17 GW. It will be a catalyst in the accelerated completion of the development activities at the project site. We thank the consortium for reposing faith in our project execution capabilities and strategic growth vision aligned to India's decarbonisation goals. We will continue the growth momentum to deliver the projects and support India's clean energy transition."

Amit Singh, chief executive officer (CEO) of Adani Green Energy Ltd, said, "We believe construction financing framework is an essential element of our development agenda and supports our unwavering commitment to build a sustainable future. The funding not only validates our expertise as a developer and operator of strategically vital renewable energy projects but also demonstrates the trust by our financiers in our strategic vision. We are committed to deliver the low-cost green electrons by leveraging technology, accelerating digital transformation, and continued focus on development and operational excellence. We are committed to expand our renewable power capacity to 45 GW by 2030 underscoring our dedication to mitigate climate change risks."