Adani Green Secured USD 400 Million From 5 International Banks

One of the world’s leading renewable energy (RE) companies, Adani Green Energy Limited, through an exchange filing dated May 02, 2024, announced that the company had secured USD 400 million in financing for its under-construction 750 MW solar projects in Rajasthan and Gujarat by a consortium of 5 leading international banks.

The consortium includes Cooperative Rabobank U.A., DBS Bank Ltd., Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation. The consortium will provide financing for projects expected to come online from November 2024 onwards.

Project Details

Adani Green’s one project, with a capacity of 500 MW, is being developed in Rajasthan under a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI). The second, a stand-alone merchant power plant with a capacity of 250 MW, is being built at the largest renewable energy cluster in the world, Khavda, in Gujarat.

Significance of Financing

• With respect to AGEL’s procurement strategy, the USD 400 million construction facility offers a syndicated guarantee-backed assurance programme in addition to financial solutions. Through this transaction, AGEL’s capital management plan may finance its merchant exposure with a sustainable debt structure.

• With the aim of delivering low-cost green electrons through merchant market promotion, it represents a turning point for the Indian RE sector as it guides the sector’s transition to the next stage of market integration initiatives that show the Indian renewable energy sector’s general trustworthiness and competitiveness in order to promote the clean energy transition and decarbonisation.

• The green loan, housed under AGEL subsidiaries, aids the company’s growth trajectory and aligns with its commitment to sustainability.

With the largest operational portfolio in India of 10,934 MW, AGEL provides the national grid with clean, inexpensive, and dependable power. The operational portfolio of AGEL includes 2,140 MW of wind-solar hybrid capacity, 1,401 MW of wind, and 7,393 MW of solar capacity.

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