Adani Green Energy Ltd (AGEL), India’s largest renewable energy company, has reached a significant milestone in its capital management journey by refinancing its maiden Construction Facility. This facility, originally raised in 2021 for the development of India’s largest solar-wind hybrid renewable energy cluster in Rajasthan, is valued at USD 1.06 billion.

Key Milestone in Capital Management

The refinancing of this construction facility is a major step forward for AGEL, marking the completion of a strategic capital management program for its underlying asset portfolio. The long-term financing secured has a door-to-door tenor of 19 years and a fully amortized debt structure that aligns perfectly with the lifecycle of the underlying asset portfolio. This approach ensures that AGEL’s financial commitments are directly matched to the cash flow cycle of the renewable projects, providing stability and predictability in its financial management.

Benefits of the Refinancing Facility

This refinancing structure offers multiple advantages:

• Financial stability: The long-term financing ensures that AGEL can continue its growth trajectory while securing sustainable value creation for its stakeholders.
• Access to diverse capital: The company now has deeper access to varied capital sources, securing large sums over extended periods to fund its renewable projects.
• Alignment with asset lifecycle: The new facility is strategically structured to emulate the life cycle of AGEL’s renewable energy assets, ensuring that the repayment plan aligns with the income generation of the projects.

Strong Credit Ratings and Financial Backing

The refinanced facility has received a high credit rating of AA+/Stable from three prominent domestic rating agencies—ICRA, India Ratings, and CareEdge Ratings. This demonstrates the strong operational performance of AGEL and the financial credibility of its renewable energy projects. These ratings reflect the company’s solid financial position, underscoring its ability to meet its long-term financial obligations and ensuring continued confidence from investors.

Supporting AGEL’s Growth Plans

This refinancing move is a crucial element of AGEL’s ongoing efforts to support its aggressive growth ambitions. As part of its strategic plan, AGEL aims to reach a renewable energy portfolio of 50 GW by 2030, significantly contributing to India’s decarbonization goals. The company’s vision for clean energy involves leveraging advanced technology to reduce the Levelized Cost of Energy (LCOE), promoting widespread adoption of affordable clean energy.

World’s Largest Renewable Energy Project

One of AGEL’s most ambitious projects is the development of the world’s largest renewable energy plant at Khavda, Gujarat. Spanning an area of 538 square kilometers, this solar-wind hybrid plant will generate up to 30 GW of power—five times the size of Paris. AGEL’s commitment to sustainable energy solutions is reflected in its environmentally responsible practices, such as being water positive for plants over 200 MW, single-use plastic-free, and zero waste-to-landfill.

Commitment to Sustainable Growth

Adani Green Energy’s dedication to sustainability is not just about expanding renewable energy capacity; it is also about ensuring that growth is environmentally responsible and contributes to a greener future. By refinancing its facilities and expanding its renewable energy projects, AGEL continues to reinforce its position as a global leader in renewable energy.

In conclusion, AGEL’s refinancing of USD 1.06 billion is a critical step towards achieving its long-term growth objectives. This milestone not only secures the company’s financial future but also ensures that it is well-positioned to continue its leadership in the clean energy transition. With a strong financial foundation, strategic capital management, and a commitment to sustainability, AGEL is poised to shape the future of India’s renewable energy landscape.

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