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Adani Green Energy intends to raise around $4-4.5 billion through overseas dollar bonds over the next three to four years to fund its expansion and reach its stated target of 45 GW renewable energy capacity by 2030, sources said.
The company is effectively looking to raise around $1 billion a year, sources said.
The Gautam Adani-controlled company, which has close to 10 GW of operational renewable energy portfolio, has already spent over $2.5 billion and it envisages spending another $8 billion on setting up power generation capacity.
Of this around 20 per cent will be funded through equity, and the remaining through debt, mostly in the form of dollar borrowings, and with a small component of domestic debt. The domestic debt will be mostly vanilla loans from banks and issue of debt securities.
With regard to the equity portion, sources said that it would be contributed by promoters, flagship Adani Enterprises and private equity placements to strategic investors.
Last fiscal year the company had raised over $1.1 billion through a preferential issue of share warrants to the promoter group. Just last month the company successfully raised $409 million through a US dollar bond sale -- the first such offering by the group after the Hindenburg report -- that saw enthusiastic response from investors, with subscriptions worth $3 billion being received.
The 18-year bond issuance was competitively priced at 6.7 per cent on back of the strong demand, lower than the indicative pricing. Sources said that this reception of its bond offering has prompted the group to stick to its favoured method of raising funds from the overseas markets.
Another $1 billion worth of bonds are in the offing later this year, reports have indicated.
If the US Federal Reserve cuts rates later this year as widely expected, the company can hope to borrow cheaper.
Energy portfolio
Under its operational portfolio Adani Green has over 6 GW of solar assets, 1.4 GW wind assets and over 2 GW hybrid. Another 12 GW of assets are under construction of which 10.5 GW is solar power. This is part of the locked-in assets of 21.8 GW, for which land is secured and power purchase agreements have been signed. For its wind and solar projects the company has secured 2 lakh acres of land
It has operationalised 1 GW of solar power at its massive renewable energy park in Khavda, Gujarat, touted to be the world’s largest such park with a total capacity of 30 GW that will come up over the next five years. In Rajasthan it has a 2.1 GW hybrid power cluster in Jaisalmer, Rajasthan.
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