Adani Green Energy Secures Long-Term Financing for Its Renewable Growth

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Synopsis of the Article 

• Adani Green Energy Ltd (AGEL) refinances a USD 1.06 billion Construction Facility taken in 2021.
• The financing will support the largest solar-wind hybrid renewable energy cluster in Rajasthan.
• The new long-term loan has a 19-year tenor with a fully amortized debt structure, ensuring financial stability.
• AGEL has completed its capital management program for the underlying asset portfolio.
• The refinancing ensures deep access to diverse capital pools, aligning perfectly with cash flow cycles.
• The facility has been rated AA+/Stable by three domestic rating agencies—ICRA, India Ratings, and CareEdge Ratings.
• AGEL continues to strengthen its financial foundation for long-term growth in renewable energy.
• The company is India’s largest renewable energy provider, with an operating capacity of 12.2 GW.
• AGEL is developing the world’s largest renewable energy project (30 GW) in Khavda, Gujarat, covering 538 sq km.
• The company remains committed to sustainability, aiming for 50 GW capacity by 2030 to support India’s clean energy goals.

The biggest provider of renewable energy in India, Adani Green Energy Ltd. (AGEL), has made significant progress in fortifying its financial base. The business has successfully refinanced a USD 1.06 billion loan that was first obtained in 2021 and was instrumental in the creation of Rajasthan’s largest solar-wind hybrid renewable cluster in India.

A significant accomplishment in AGEL’s capital management strategy is this refinance agreement. With a completely amortized debt structure and a 19-year duration, the new long-term loan is meticulously crafted to align with the financial requirements of the business’s initiatives. In addition to ensuring increased financial stability, this action enables AGEL to carry out its aggressive expansion in renewable energy.

AGEL has finished its capital management program for its portfolio of renewable assets by obtaining this long-term financing. The goal of this program is to secure funding sources that complement its projects’ cash flow lifespan.

Maintaining and growing operations are made easier by AGEL’s capacity to obtain substantial amounts of funds from a variety of financial sources thanks to this carefully thought-out plan. The objective is straightforward: to continue expanding sustainable energy in India and abroad while preserving financial stability.

The acknowledgment of AGEL’s solid operational history is another significant aspect of this refinance agreement. Three significant domestic rating agencies have given the new facility an AA+/Stable rating:

ICRA
India Ratings
CareEdge Ratings

The company’s strong financial standing and capacity to oversee sustained investments in renewable energy are reflected in these excellent scores.

As the biggest provider of renewable energy in India, AGEL is crucial to the nation’s clean energy transition. With ambitious plans to achieve 50 GW by 2030, the business presently manages 12.2 GW of renewable energy projects in 12 states.

The 30 GW renewable energy plant being built in Khavda, Gujarat, is among its most innovative projects. This project is expected to become the largest renewable energy facility in the world, covering 538 square kilometers, which is five times the area of Paris.

AGEL has a strong commitment to sustainability in addition to increasing the use of renewable energy. The business has obtained some environmental certifications, guaranteeing that its activities comply with international best practices:

Water positive certification for plants above 200 MW
Zero waste-to-landfill certification
Single-use plastic-free operations

By taking such steps, AGEL is reaffirming its aim for a cleaner and greener future and continuing to set the standard for responsible and sustainable energy growth.

This refinancing milestone marks a significant step in AGEL’s journey. The business is in a strong position to propel India’s shift to renewable energy by guaranteeing long-term financial stability. The successful management of capital allows AGEL to invest in advanced clean energy technologies, expand its renewable projects, and contribute to India’s decarbonization goals.

AGEL’s accomplishments in achieving financial stability further solidify its role in enabling millions of people to have access to affordable, large-scale clean energy, especially as the Indian government pushes for more usage of renewable energy.

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