Adani Green Energy Completes Redemption Of $750 Million Holdco Notes

Adani Green Energy Ltd (AGEL), India’s largest renewable energy company, has fully redeemed its USD 750 million Holdco Notes ahead of their maturity date of 8 September 2024.

This move underscores the company’s solid financial position and its commitment to sustainable capital management.

The Holdco Notes, which carried an interest rate of 4.375%, were issued in September 2021 to support AGEL’s ambitious growth plan.

Over the past three years, AGEL’s installed capacity has grown dramatically, increasing from 3.5 GW to 11.2 GW; a compound annual growth rate of 48%.

The company has decided to redeem the Notes in cash, rather than refinancing, reflecting its strong cash flows and operational stability.

A robust capital management strategy supports AGEL’s growth trajectory.

By combining strong cash flows from its operational assets with a construction facility framework, AGEL is positioned to achieve its target of 50 GW capacity by the fiscal year 2030.

This approach aligns with the company’s broader strategy to build long-term value through renewable energy projects and reinforce its investment-grade credit profile.

The company facilitated the redemption through a fully funded redemption reserve account, established in January 2024, ensuring full compliance with regulatory requirements.

AGEL’s Self-Funding & Capital Infusion Strengthen Growth Plans & Financial Discipline

AGEL’s ability to self-fund this significant financial obligation highlights its strong operational performance and financial discipline.

In December 2023, the company’s promoters committed to a preferential warrant subscription, injecting INR 9,350 crore, with INR 7,013 crore earmarked for any additional capital expenditure.

This capital infusion provides AGEL with further flexibility to meet its accelerated growth targets.

AGEL acknowledged its investors, lenders, and vendor partners, such as Adani Infra (India) Ltd and Adani Infra Management Services Ltd, for their continued support in driving the company’s rapid growth.

With its focus on delivering clean energy, AGEL however remains a key player in India’s journey towards decarbonization and sustainable development.

AGEL currently operates a renewable energy portfolio of 11.2 GW, spread across 12 states in India.

With a goal of reaching 50 GW by 2030, AGEL further continues to lead in the transition to clean energy, leveraging cutting-edge technology to lower the Levelized Cost of Energy (LCOE) and deliver affordable, sustainable power.

Adani Green Energy Limited

Adani Green Energy Ltd (AGEL) is a global leader in renewable energy development, owning and operating utility-scale solar, wind, hybrid, and hydro power plants.

Meanwhile, with a firm commitment to sustainability, AGEL has made significant strides toward achieving India’s decarbonization goals.

The company’s operating portfolio is water-positive, single-use plastic-free, and zero waste-to-landfill, setting benchmarks for environmental responsibility in the renewable energy sector.

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