Adani Green Energy Redeems $750-Million Holdco Notes Due September

Adani Green Energy Ltd. redeemed its $750 million 4.375% Holdco notes due Sept. 8, through a fully funded redemption reserve account maintained since January 2024. The notes were issued in September 2021 to fund AGEL's accelerated growth in the past three years. Its capacity increased more than three-fold—from 3.5 gigawatt to 11.2 GW.

"Now that AGEL has delivered the accelerated growth plan, it is redeeming the notes through cash rather than refinancing," the company said in an exchange filing on Monday.

The Adani Group company said with surplus cash from operating assets augmenting the under-construction projects' requirement, the company's overall capex program remains fully funded with such operational asset cashflows and the available construction facility pool.

Moreover, AGEL's promoters in December 2023 agreed to subscribe to a preferential warrant amounting to Rs 9,350 crore, of which, Rs 7,013 crore has been assigned to fund any accelerated capital expenditure requirements.

Adani Green Energy is India's largest renewable energy company and develops, owns, and operates utility scale grid-connected solar, wind, hybrid, and hydro pumped storage renewable power plants.

The company is in the process of investing Rs 2 lakh crore over the next seven years, to take its renewable energy capacity to 50 GW by 2030. It has a land bank for 70-80 GW already in its possession.

The operational projects at 10.9 GW already generate Rs 5,000 crore of free cash flow. By next year, the power capacity will grow to 17,000 MW, which will further aid cash flows. Hence, funding the expansion will never be a challenge for the company, said Phuntsok Wangyal, chief financial officer of Adani Green.

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