Adani Green raises USD 288 million facility for under-construction assets portfolio; stock skids ~1%

21 Mar 2022 , 10:19 AM

Adani Green Energy Limited informed the investors and exchanges that the company has extended its Construction Financing Framework to USD 1.64 billion by raising a USD 288 million facilities for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders.

The facility will initially be applied towards a 450 MW hybrid portfolio of solar and wind renewable projects that AGEL is setting up in Rajasthan, India, the company said in the press release today.

Mr. Vneet S Jaain, MD & CEO, AGEL commented, “The construction facility is the key element of AGEL’s capital management plan, enabling AGEL to deliver on our focus on decarbonizing power generation.”

He further added, “We are looking forward to sustainable growth and to catalyzing energy transition. AGEL strives to achieve 45 GW renewable energy capacity by 2030, representing 10% of the Government of India’s 450GW countrywide renewable energy target. Company’s development strategy is in line with the overall capital stewardship maintained through our capital management philosophy targeting sustainable growth.”

According to the definitive agreements, 7 international banks — BNP Paribas, Coöperatieve Rabobank U.A., Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., Societe Generale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation — committed for the facility which is a certified green hybrid project loan. The extended pool of liquidity will lend support to AGEL’s strategy to further the development of its under-construction asset portfolio in sync with accelerating the energy transition.

In March 2021, AGEL had closed a USD 1.35 billion construction revolver facility in one of Asia’s largest project financing deals.

The Facility is also certified by Second Party Opinion provider ISS ESG based on AGEL’s sustainable strategy, alignment with Green Loan Principles and sustainability quality of the asset pool, with ‘very high’ transparency standards and significant contributions to SDG 7 (affordable and clean energy) and SDG 13 (climate action). As per the assessment, AGEL shows a high sustainability performance on key ESG issues in the Renewable Energy industry, representing the highest relative ESG performance.

Adani Green Energy is currently trading at Rs1,882.45 down by Rs23.3 or 1.22% from its previous closing of Rs1,905.75 on the BSE. The scrip opened at Rs1,949.95 and has touched a high and low of Rs1,949.95 and Rs1,876.55 respectively.