The top private renewable energy company in India, Adani Green Energy, plans to raise $2 billion in the upcoming months by issuing international bonds and loans, according to people with knowledge of the situation. Due to investor concerns about geopolitical factors, the company postponed a $1.2 billion bond issue last month, but it is now planning to launch a $600 million bond issue soon. The yield on US Treasury bonds is at its highest level since May, and the pricing is anticipated to be higher for the next issuance. Three of Adani Green’s subsidiaries situated in Rajasthan that are involved in operational wind and solar projects will be involved in this new bond issue.
Encouragement of the growth of renewable energy initiatives
The development of operating capacity in the Khavda solar project, which is billed as the largest renewable energy park in the world, will be supported in part by the money raised. At the time of September 2024, 2.2 GW of its 30 GW capacity was active. Apart from issuing bonds, Adani Green intends to get two further tranches of $300 million and $550 million in bank loans for construction financing within the next two months.
Adani Green Eyes $5B Construction Funding
Power purchase agreements (PPAs) for 534 MW of solar power projects have been signed between Adani Renewable Energy Fifty Nine, a subsidiary of Adani Green Energy, and the Solar Energy Corporation of India (SECI). AGEL’s overall renewable energy project capacity now stands at 21,778 MWac thanks to this achievement.
The company recently inked a construction framework agreement worth USD 3.4 billion for long-term project financing with banks such as DBS, Mizuho, SMBC, MUFG, and others. There are plans to increase the framework’s size to USD 5 billion. For construction funding, additional tranches of USD 300 million and USD 550 million are anticipated in the upcoming months.
