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French energy firm acquires 50% stake in Adani's solar business for Rs 3,707 crore

The transaction underlines the partners' commitment to contribute to addressing India's sustainable development goals, says Gautam Adani-led Adani Green Energy

Chitranjan Kumar | April 7, 2020 | Updated 18:22 IST
French energy firm acquires 50% stake in Adani's solar business for Rs 3,707 crore
In February this year, Total SA had announced it would invest $510 million to acquire a 50 per cent stake in Adani's solar assets

Billionaire Gautam Adani-led Adani Green Energy (AGEL) on Tuesday announced that French oil major Total SA has invested Rs 3,707 crore to acquire a 50 per cent stake in Adani's solar business. Total SA will own half of a joint venture (JV) company that operates solar projects owned by AGEL.

TOTAL SA, through its step-down subsidiary, has today invested approximately Rs 3,707 crore for 50 per cent partnership with AGEL in a Joint Venture," Adani Green Energy said in a filing to the Bombay Stock Exchange.

In February this year, Total SA had announced it would invest $510 million to acquire a 50 per cent stake in Adani's solar assets.

The JV houses 2,148 GW solar projects operating across 11 states in India. The portfolio includes the restricted group 1 & 2 projects, which had recently raised $862.5 million from the international bond market. Restricted Group 2 was the first investment grade rated issuance (rated BBB-/Baa3/BBB-) by a renewable business in India and was widely recognised by global capital markets and international publications, it said.

"The transaction underlines the partners' commitment to contribute to addressing India's sustainable development goals," the Adani group company said.

Through the JV, both companies aim to adhere to highest standards of governance and strengthen the foundation of the partnership between the two groups, it said.

Also Read: French energy major Total SA to buy 50% stake in Adani's solar business for $510 million

"The closing of the transaction in the current environment reinforces the strength of the relationship between AGEL and TOTAL and underscores the robust joint climate commitment of both partners," it added.

This is the Adani's second partnership with Total SA. The French energy giant had bought a 37.4 per cent stake in Adani Gas for around Rs 5,700 crore in October last year.

AGEL said it aims to achieve 25 GW of clean energy by 2025 to become the largest solar player in the world and the largest renewable player in the world by 2030. "To support this vision, the Adani group has committed to invest over 70 per cent of its budgeted capex into clean energy and energy-efficient systems," it added.

AGEL has a total renewable portfolio of 5,290 MW, out of which 2,320 MW is operational and rest 2,970 MW is under construction in the first of FY20.

Also Read: Ex-Fortis promoter Shivinder Singh seeks bail on coronavirus ground; HC rejects plea

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