Adani Green to redeem $750-mn bonds 8 months ahead of maturity

Adani Green to redeem $750-mn bonds 8 months ahead of maturity

Adani Green Energy (AGEL), the renewable energy arm of Adani group, on Monday announced plans to fully redeem bonds worth $750 million due in September, eight months ahead of their maturity date.

The firm intends to redeem 4.375% holdco (holding company) bond, due on September 9, 2024. Underpinning the repayment is the equity capital raising of $1.425 billion (includes $1.125 billion of preferential issuance by promoters and $300 million from TotalEnergies JV), AGEL said in a regulatory update.

In September 2023, TotalEnergies announced a plan to invest $300 million into a new joint venture with AGEL to set up projects with a total portfolio of 1,050 MW. The transaction closed on December 26, 2023, and the funds are lying in a senior debt redemption account (SDRA) of the holdco notes, it added.

AGEL expects to raise the remaining $281 million from the initial tranche of a preferential allotment to promoters by the end of this month. The funds would be deposited in the SDRA.

With this, AGEL would have fully defeased the holdco notes, resulting in significant deleveraging in AGEL by way of equity proceeds while continuing to deliver on the growth plans, it added.

Earlier, AGEL – in which French energy giant TotalEnergies holds a 19.7% – had set a target of 45 GW of renewable energy capacity by 2030, as it looks to cut emissions and help India meet its carbon neutrality target. AGEL has 8.3 GW of operational renewable energy capacity and another 12.118 GW is nearing construction or under execution.

In December, AGEL’s promoters agreed to infuse Rs 9,350 crore ($1.13 billion) in the company that would be used for reducing debt and capex. This transaction follows a $1.4-billion debt raised earlier this month, and takes the total capital raised to $3 billion.

After the announcement, AGEL’s share prices closed up 0.45% at Rs 1,681.30 on the BSE.