(Bloomberg) -- Billionaire Gautam Adani's renewable power venture signed a $1.35 billion agreement with 12 global banks to fund the Indian company's under-construction projects.
Lenders include Standard Chartered Plc, Sumitomo Mitsui Banking Corp., and Barclays Plc, Adani Green Energy Ltd. said in a stock exchange filing Thursday. The revolving credit facility would initially finance 1.69 gigawatts of wind- and solar- hybrid projects to be built in the Indian state of Rajasthan. The company has a total of 10.9 gigawatts of capacity under construction, according to its website.
Adani Green is planning to expand its capacity to 25 gigawatts by 2025, a more than seven-fold expansion of its current fleet of about 3.3 gigawatts. The credit line will be key to funding those growth plans, according to the statement.
India's plans to multiply its renewable power capacity almost five times over the next decade have brightened growth prospects for the company. The outlook help it sign a $2.5 billion investment deal in January with French oil major Total SE. Adani Green's stock has surged more than eight times over the past year.
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Yet, the company has its challenges. It has struggled to find buyers for an 8 gigawatt generation project it won last year because the price of power from it is higher than prevailing prices in other solar auctions.
The project needs to be developed in four phases of 2 gigawatts each. The company is expecting to have buyers for the first phase soon, Managing Director Vneet S. Jaain told analysts on a call last month.
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