Adani Green Energy Completes Redemption of USD 750 Million Holdco Notes

On September 9, 2024, Adani Green Energy Limited (AGEL) successfully completed the redemption of all outstanding USD 750 million 4.375% Holdco Notes, which were due on September 8, 2024. This move follows AGEL’s announcement in January 2024 to fully backstop these Holdco Notes through a redemption reserve account, which was maintained 8 months prior to the maturity date. This proactive approach ensured compliance with applicable guidelines and facilitated the full redemption of the notes upon maturity.

The three-year Holdco Notes, issued in September 2021, were instrumental in supporting AGEL’s aggressive growth trajectory. During this period, AGEL’s installed capacity has surged more than three-fold, increasing from 3.5 GW to 11.2 GW. This expansion has been achieved with a remarkable compounded annual growth rate (CAGR) of 48%.

AGEL’s capital management strategy has been centred around long-term value creation through strategic asset development. This approach has positioned AGEL as a self-sustaining growth engine. The company’s structured capital management emphasises achieving credit metrics similar to an investment-grade profile for its underlying debt capital raise program. AGEL remains committed to capital market issuances designed for long-term infrastructure assets, supported by predictable and robust cash flows that align with the life span of the underlying assets.

Over time, AGEL’s Capital Management Plan has evolved to support a seasoned portfolio with a strong operational asset base, complementing ongoing construction projects. The surplus cash generated from operational assets is used to fund under-construction projects, while the available construction facility pool ensures that the capital expenditure (capex) program remains fully funded.

In addition, AGEL’s promoters agreed in December 2023 to subscribe to a preferential warrant worth ₹9,350 crore. Of this amount, ₹7,013 crore (equivalent to USD 835 million) will be available to AGEL to support accelerated capital expenditure needs.

AGEL expresses gratitude to its investors, lenders, and vendor partners, including Adani Infra (India) Ltd and Adani Infra Management Services Ltd, for their unwavering support. This collaboration has been crucial in executing AGEL’s accelerated growth plan, with a goal to achieve 50 GW of renewable energy capacity by 2030.

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