Adani Green to raise Rs 9K cr from promoters 

Adani Green to raise Rs 9K cr from promoters 

The promoters of Adani Green Energy (AGEL), the renewable energy arm of Adani Group, will infuse `9,350 crore ($1.13 billion) in the company that would be used to cut debt. This transaction follows a $1.4-billion debt raised earlier this month and takes the total capital raised to $3 billion.The company’s board on Tuesday approved a proposal to issue 63.1 million warrants at `1,480.75 per share to the promoters for the fundraise. The funds will be utilised for deleveraging and accelerating growth spends, AGEL said in a regulatory update.

“This investment by the Adani family underscores our commitment not only to making our nation’s clean energy dream a reality but also to an equitable energy transition where we phase down traditional power sources while simultaneously phasing up green, affordable alternatives to fuel our accelerating growth and development plans. With the funds infusion, AGEL remains favourably positioned to achieve its accelerated growth trajectory,” Adani Group chairman Gautam Adani said.

The infusion of Rs 9,350 crore would also help AGEL achieve its target of 45 GW capacity by 2030. The company has 20.6 GW locked in capacity and land of over 200,000-acre across the country. Earlier in December, AGEL raised a follow-on funding of $1.36 billion from a consortium of eight leading international banks for construction of 2,167 MW solar power projects in Gujarat.AGEL signed the agreements with BNP Paribas, Coöperatieve Rabobank UA, DBS Bank, Intesa Sanpaolo SpA, MUFG Bank, Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation for the senior debt facility. All the banks are returning lenders and instrumental in establishing AGEL’s Construction Financing Framework since March 2021.

In addition, AGEL has announced $1.43 billion of equity capital ($1.13 billion from preferential issuance by promoters and $300 million from French petroleum major TotalEnergies SE), totalling about $3 billion. In September, TotalEnergies announced a plan to invest $300 million for a new joint venture with AGEL to set up projects with a total portfolio of 1,050 MW. While TotalEnergies would bring in the equity investment, AGEL will provide its assets to the JV. The deal will enable AGEL to emerge as the leader in renewable energy. TotalEnergies holds a 19.75% stake in AGEL.

Earlier this month, AGEL proposed to repay $750-million bonds on its due date of September 8, 2024, itself. The secure senior notes have a coupon rate of 4.375%. AGEL had also asked the underwriters of the bond to provide a funding letter for $675 million and it will use equity transaction proceeds to build up the repayment sum.On Tuesday, shares of AGEL ended up 4.30% at `1,599.90 on the BSE.