Adani Green Energy plans to raise up to $1.5 billion via equity warrants, debt

Adani Green Energy plans to raise up to $1.5 billion in equity and debt to spend on expanding capacity, sources familiar with the plan said.

In an exchange filing, the company said it would meet on December 26 to consider a proposal to raise funds through issue of equity shares or equity-related securities on a rights or preferential basis. It did not specify the amount.

Sources indicated that it would raise up to $1 billion in the form of warrants convertible to equity and up to $500 million in the form of debt.

The larger funding pattern of the company to expand its capacity to 45 GW by 2030, will comprise both equity and debt with the equity component at 20 per cent. The debt funding will be through bank loans, with 30 per cent from Indian banks and the rest from foreign banks, sources said.

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Use of funds

The funds are primarily needed to develop the green hydrogen ecosystem and its core green energy portfolio of solar, wind and hybrid projects.

Earlier this month, the company announced raising $1.35 billion in construction facility from eight international banks to develop its renewable energy park at Khavda in Gujarat.

It currently has about 8.4 GW of operational assets, slightly over 10 GW under execution, and close to 2 GW nearing construction. The bulk of this is solar projects at 76 per cent, followed by hybrid and wind.

The core energy portfolio of the company, which will drive the next wave of growth, is concentrated on the development of affordable renewable energy and storage solutions, accelerating digitalisation and automation to drive efficiency and optimise its finance cost while managing the duration risk of its projects with a diversified global finance pool.

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