Adani Green Energy to raise $2 bn via bonds, loans for renewable projects

Adani Green Energy to raise $2 billion via bonds and loans, focusing on renewable projects, including Khavda solar park expansion, while targeting a 50 GW capacity by 2030

Adani Green Energy plans to raise around $2 billion through a mix of international bonds and loans over the coming months, according to a report by The Economic Times.

 

The company is preparing to launch a $600 million bond issue in the next few days. This comes after it postponed a $1.2 billion bond issuance last month, as investors demanded higher yields due to geopolitical uncertainties.

 

During the earlier attempt, the company had proposed a fixed coupon rate of 7 per cent for a 20-year bond, but the pricing is expected to be higher this time due to rising yields in global markets, including the 10-year US Treasury rate, which recently reached its highest level since May 31, the report said.

 

Focus on subsidiary financing

The funds from the bond issuance will target three of Adani Green’s Rajasthan-based subsidiaries involved in wind and solar energy projects. In contrast, the company is pursuing private placement for the remaining subsidiary, aiming for a 20-year tenure deal to be finalised by early 2025, the report said.

 

Previously, Adani Green had entered into a $3.4 billion construction framework agreement with international banks like DBS, Mizuho, SMBC, MUFG, and ING, among others. The company is now transitioning to bond markets to reduce its reliance on short-term loans and extend debt maturity to 20 years. It also aims to expand the framework agreement to $5 billion to support future projects.

Supporting expansion of renewable energy projects  

Part of the raised funds will support operational capacity expansion in the Khavda solar project, claimed to be the world’s largest renewable energy park. Currently, 2.2 GW of its 30 GW capacity has been operationalised as of September 2024.  

 

In addition to the bond issuance, Adani Green plans to secure two other tranches of $300 million and $550 million in construction financing through bank loans in the next two months.  

Strong operational growth and future targets

With an operational renewable energy capacity of 11.18 GW, Adani Green aims to reach 50 GW by 2030. The company reported robust growth in the second quarter of FY2024, with revenues increasing by 20 per cent year-on-year to Rs 2,309 crore and net profit rising 39 per cent to Rs 416 crore. Recent additions to its portfolio include 2,868 MW, comprising 2,000 MW of solar and 450 MW of wind energy projects.