Adani Green Energy Ltd. (AGEL) on Monday announced the successful redemption of all outstanding USD 750 million 4.375 per cent Holdco Notes due on September 8, 2024.
This comes after the company’s announcement, in January 2024, to fully backstop the Holdco Notes through a fully funded redemption reserve account maintained eight months prior to the redemption date to enable full redemption of Holdco Notes upon maturity in accordance with applicable guidelines.
According to the firm, AGEL’s high-growth objectives have been backed by the three-year Holdco Notes, which were issued in September 2021. AGEL’s capacity expanded by more than three times over that period, rising from 3.5 GW to 11.2 GW, with a CAGR (compounded annual growth rate) of 48%.
The company’s overall capital management philosophy has maintained its emphasis on developing assets to create long-term value and has positioned AGEL as an independent growth engine.
It also highlighted how its underlying debt capital raising initiative will use a structured method to achieve credit metrics similar to an investment grade profile.
In light of this, the business stated that it is dedicated to ensuring that capital market issuances for the long-term infra asset class is supported by a steady and reliable cash flow stream in order to achieve a long curve that simulates the life of underlying assets.
The Capital Management Plan has developed over time to the point where AGEL is able to sustain the under-construction development with a superior operational asset base and a “seasoned” portfolio. AGEL’s entire capex plan is still completely supported by the cashflows from operating assets and the pool of construction facilities that are available, with the excess cash from these assets supporting the requirements of the under-construction projects.
Furthermore, in December 2023, AGEL’s promoters consented to subscribe for a preferred warrant worth Rs 9,350 Cr, of which Rs 7,013 Cr (or the equivalent of USD 835 million) would be available with AGEL to finance any requirements for accelerated capital expenditures.
Additionally, the company expressed gratitude to its vendor partners, Adani Infra (India) Ltd. and Adani Infra Management Services Ltd., for their ongoing support in carrying out the accelerated growth plan, which has put AGEL on track to reach 50 GW of renewable energy capacity by 2030. It also commended its lenders and investors for their confidence.
