Adani Green Energy fully redeems $750 million of Holdco bonds

Ahmedabad (Gujarat) (India), September 9 (ANI): Adani Green Energy on Monday said it has completed redemption of all outstanding $750 million of 4.375% Holdco bonds due September 8, 2024.

This follows the company’s announcement in January 2024 that it intends to fully secure the Holdco Notes through a fully funded redemption reserve account maintained eight months prior to the maturity date to allow for the full redemption of the Holdco Notes upon maturity in accordance with applicable guidelines.

The company said the three-year Holdco Notes issued in September 2021 supported AGEL’s high-growth objectives. During this period, AGEL’s production capacity more than tripled from 3.5 GW to 11.2 GW, registering a CAGR (compound annual growth rate) of 48 percent. The company’s overall capital management philosophy remains focused on creating long-term value through asset development and positions AGEL as a self-reinforcing growth engine.

The importance of a structured approach aimed at achieving investment-grade credit metrics for the underlying debt capital raising program was also highlighted.

The company added that it intends to pursue capital market issuances tailored to the long-term infrastructure asset class, supported by a predictable and robust cash flow stream to achieve a long curve reflecting the life cycle of the underlying assets.

Over the years, the Capital Management Plan has matured to enable AGEL to have an “experienced” portfolio with an excellent base of operating assets to support development under construction. With surplus cash from operating assets increasing the requirements of projects under construction, AGEL’s overall capital expenditure program remains fully funded by such cash flow from operating assets and the available pool of construction assets.

Further, the promoters of AGEL have agreed in December 2023 to subscribe for preferential warrants worth Rs 9,350 million, of which Rs 7,013 million (equivalent to US$ 835 million) will be available to AGEL to fund any accelerated capital expenditure requirements.

The company also thanked its investors and lenders for their confidence and its partners, including Adani Infra (India) Ltd and Adani Infra Management Services Ltd, for their continued support in executing its accelerated growth plan, which puts AGEL on track to achieve 50 GW of renewable energy capacity by 2030. (ANI)