Adani Green Secures Redemption Of $750 Million Holdco Bond Eight Months Before Maturity

Adani Green Energy Ltd. on Monday announced plans to fully redeem its $750 million 4.375 notes, or Holdco Notes, eight months prior to their maturity on Sept. 9, 2024.

This was possible on receipt of funds under the preferential allotment of Rs 9,350 crore, or $1,125 million, to promoters of Adani Green Energy.

"The outstanding amounts of the Holdco Notes shall be fully secured through cash balances set aside as part of various reserve accounts securing the Holdco Notes, eight months prior to maturity," the company said in a press release. With this, the company has fully defeased the Holdco Notes eight months prior to the maturity date and has further resulted in significant deleveraging in AGEL by way of equity proceeds while continuing to deliver on the growth plans, according to an exchange filing.

Underpinning the repayment is the successful equity capital raise programme of $1.425 billion, which includes $1.125 billion of preferential issuance by promoters and $300 million from TotalEnergies JV, reflecting the deep interest of long-term investors and strategic partners, coupled with the unwavering promoter commitment to meet Adani Green Energy's strategic priorities of achieving its target of 45 GW by 2030.

The redemption plan for the Holdco Notes is as detailed below:

• Amounts In The Reserve Accounts And Internal Accruals: $169 million, including debt service reserve accounts, hedge reserves and interest on the reserve account.

• TotalEnergies 1,050 MW JV Consideration: $300 million, transaction closed on Dec. 26, 2023, and the funds are already lying in the Senior Debt Redemption Account of the Holdco notes.

• Proceeds From Initial Tranche Of The Promoter Preferential Allotment: $281 million, or Rs 2,338 crore, are expected in the end of January 2024, and the funds shall be deposited into the senior debt redemption account of the Holdco notes.

• Total Amount: $750 million.

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