Adani Green Energy (AGEL), through its subsidiary Adani Solar Energy AP Six, has raised JPY denominated facility to refinance its existing indebtedness. The facility comprises JPY 27,954 million (c. USD 200 Mn equivalent) amortising project loan facility, assessing the 16 years debt structure with door-to-door tenor of 10 years and average tenor of more than 8 years.
The project loan facility is supported by AGEL's strong relationship with its two core relationship banks - MUFG Bank and Sumitomo Mitsui Banking Corporation with equal participation. The facility is also testament of AGEL's strong relationship with its core banking partners creating the appetite for large size and the long tenor through development of market instruments tapping in liquidity and widening the access to fund raising.
The facility is linked to Tokyo Overnight Average Rate (TONA), a Japanese benchmark rate gauge, which yields close to zero highlighting the appeal to broaden the alternative pools of capital providing relatively competitive interest rates.
The refinancing facility is consistent with AGEL's strategy of securing long term financing establishing the debt structure in conformity to underlying asset life for its operational assets. The facility follows the principles of investment grade credit metrices which have the life-cycle leverage profile (measured through Debt to EBITDA) of c. 3x covering the underlying PPA tenor.
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