Adani Green Energy Ltd. (AGEL) announced on Thursday that it has raised $750 million to fully fund equity needs for its under-construction pipeline. The fully-funded pipeline is on track to be the world's largest renewable energy platform by 2030, as per the firm.
In an official statement, Adani Green Energy said that it raised its maiden ListCo senior issuance of $750 million through a three-year issuance under 144A/Reg S format at a fixed coupon of 4.375 per cent. This was the first bond issuance by the ListCo, Adani Green Energy, following successful issuances by its subsidiaries RG1 and RG2 in 2019
Adani Green Energy has explained that the issuance was oversubscribed 4.7x times.
"The 4.7X oversubscription of this issuance is testimony of the confidence of global investors in the world's fastest growing Renewable Energy platform and Adani's capability to set up a world class clean energy business" said Vneet S Jaain, MD and CEO, AGEL. "This ListCo Senior Green Bond issuance is yet another landmark transaction for AGEL and fully funds our pipeline of projects and reinforces our commitment towards being a sustainability focused global infrastructure platform."
Adani Green Energy now has an overall order book of $3.5 billion. According to the firm, the order book is made up of all-around participation from "Real Money Investors" comprising 48% from Asia, 28% from Europe, Middle East and Africa and 24% from North America.
The firm has stated that funds generated will be utilised towards equity funding of the capex for underlying renewable projects under construction. "Under the structure, AGEL can draw upto $1,700 million (including the present issuance) over the course of time subject to the covenants of the structure. The notes were rated Ba3 (Stable) by Moodys," noted Adani Green Energy in an official statement.
Earlier, Adani Green Energy had completed the tie-up of a $1.35 billion revolving construction framework arrangement for senior debt funding of construction stage projects. The firm stated that with the $750 million ListCo issuance, it has completed the final phase of its capital management plan, and now has a fully-funded program for both debt and equity for its stated target of 25 GW by 2025.
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