Adani Group's renewable energy arm, Adani Green Energy Limited (AGEL) on Thursday announced completion of its ~$2 billion fundraising programme to set up 25 gigawatt (GW) of renewable energy generation capacities by 2025.
In the latest phase of fundraising, the company on Thursday announced raising $750 million through 3-year senior notes- ListCo Senior Green Bond, under the 144A / Reg S format.
Earlier this year, AGEL had completed the tie-up of a $1.35 billion revolving construction framework arrangement for senior debt funding of construction stage projects. “This ListCo Senior Green Bond issuance is yet another landmark transaction for AGEL and fully funds our pipeline of projects,” said Vneet S Jaain, MD and CEO, AGEL. Jaain further reiterated company's commitment to further accelerate its footprint and become the world’s largest renewable energy company by 2030.
Ba3 (Stable) rating
The latest bonds issue, which was oversubscribed by 4.7 times, is priced at a fixed coupon of 4.375%. Ratings agency Moody's has given Ba3 (Stable) rating to the bonds issue. “The funds shall be utilised towards equity funding of the capex for underlying renewable projects under construction by AGEL. Under the structure, AGEL can draw upto $1,700 million (including the present issuance) over the course of time subject to the covenants of the structure,” an official statement said. “With this $750 million ListCo issuance, AGEL has completed the final phase of its capital management plan, and now has a fully funded programme for both debt and equity for its stated target of 25 GW by 2025,” it added.
Jaain further added, “The 4.7X oversubscription of this issuance is testimony of the confidence of global investors in the world’s fastest growing renewable energy platform and Adani’s capability to set up a world class clean energy business."
Vigeo Eiris, a subsidiary of Moody’s Investor Service, has provided a second party opinion endorsing AGEL’s green framework and KPMG has provided independent assurance on the same.
The joint lead managers (JLMs) to the Issuance were Axis Bank, Barclays, BNP Paribas, DBS Bank Ltd., Emirates NBD Capital, IMI-Intesa Sanpaolo, MUFG, Mizuho Securities, SMBC Nikko and Standard Chartered Bank.
The JLMs were represented by Linklaters and Talwar Thakore & Associates. The issuer was represented by Latham & Watkins and Cyril Amarchand Mangaldas.
MUFG Bank acted as lead green structuring advisor and Standard Chartered Bank acted as co-green structuring advisor, the statement said.
AGEL shares traded flat on the BSE at ₹1,077, marginally down 0.1% from previous close.