Adani Green Energy Limited (AGEL) has successfully secured funding for its $750 million 4.375% notes due on September 9, 2024, known as Holdco Notes. This achievement comes after the receipt of Rs 9,350 crore (approximately $1,125 million) through preferential allotment to AGEL’s promoters, which was overwhelmingly approved by shareholders with a 99.9% majority on January 18, 2024.
Following the approval, the promoters infused a substantial Rs 2,338 crore ($281 million) into AGEL, allocating these funds to the Senior Debt Redemption Account (SDRA) and other reserve accounts associated with the Holdco Notes. AGEL confirmed the completion of this funding in a regulatory filing.
The funding breakdown includes $300 million from TotalEnergies JV proceeds funded in the SDRA on January 3, 2024; the promoter’s preferential allotment of $281 million funded in the SDRA on January 25, 2024; and an accumulated balance of $169 million in the Debt Service Reserve Account, Hedge Reserves, and Interest on Reserve Account.
With these contributions, the total redemption of the bond is now fully secured in the respective accounts through term fixed deposits, earmarked exclusively for the Holdco Notes’ redemption. This strategic financial planning ensures that the bond is defeased, effectively considered repaid, eight months before the maturity date of the Holdco Notes. This aligns with Adani Green Energy’s commitment to achieving its 45 GW capacity target by 2030.
The success of the equity capital raise program, involving both long-term investors and strategic partners, coupled with the unwavering commitment of the promoters, has played a pivotal role in reaching this financial milestone.
Meanwhile, on Monday, Adani Group stocks were experiencing a rally ahead of its earnings and the 2024 interim budget. Adani Enterprises’ shares surged by up to 6%, reaching Rs 3,063.90 with a total market capitalization of approximately Rs 3.5 lakh crore. Simultaneously, Adani Green Energy stock was trading 4.40% higher at Rs 1,737.75, with a total valuation of Rs 2.75 lakh crore.
