Adani Green Secures Refinancing for $1.06 Billion Project

Adani Green Energy Ltd. (AGEL), in order to build the largest solar-wind hybrid renewable cluster in India in Rajasthan, said it had successfully refinanced its first construction facility with an outstanding balance of USD 1.06 billion from 2021. The biggest renewable energy provider in India, AGEL, revealed this development on 3 March, stating that it has reached yet another significant milestone in its Capital Management Journey. Additionally, the long-term financing obtained to refinance its construction facility includes a 19-year door-to-door tenor and a fully amortised debt structure that mimics the life of the underlying assets. This innovation marks the effective completion of AGEL's capital management program for the underlying asset portfolio, which entails obtaining long-term facilities that are precisely in line with the portfolio's cash flow lifecycle.

How Refinancing is Expected to Improve Company’s Portfolio?

The new refinance plan has a fully paid-off debt structure that is tailored to the underlying asset's lifespan and a 19-year door-to-door tenor. The facility has received an AA+/Stable rating from three domestic rating agencies: ICRA, India Ratings, and CareEdge Ratings. AGEL's capital management program for the underlying asset portfolio, which seeks to obtain long-term facilities in line with the cash flow lifetime of the portfolio, is now complete thanks to this refinance. According to the corporation, this strategy secures substantial sums of money over an extended period of time and offers advantages through access to a variety of capital pools. With a goal of reaching 50 GW by 2030, AGEL now manages a 12.2 GW renewable portfolio spread across 12 Indian states. In Khavda, Gujarat, the business is building what it claims is the largest renewable energy plant in the world, covering 538 square km. In order to strengthen AGEL's financial stability as it pursues its growth trajectory in the renewable energy industry, the refinance is a calculated decision.

The Instability Surrounding Adani Green's Bond

Following the arrest of senior officials, including Chairman Gautam Adani, by the US Department of Justice (DOJ) on suspected bribery allegations, Adani Green had previously cancelled its planned $600 million bond issue in November 2024. Adani and others were charged by the DOJ with arranging payments to Indian government representatives in order to obtain contracts for solar energy. Shortly after pricing, the bond issuance was terminated due to growing legal and regulatory issues. Adani Green withdrew its bond offering for the second time in as many months; the first effort was cancelled because of adverse market circumstances. The group's US dollar bonds saw a sharp decline as a result of the accusations, indicating market apprehension over governance and regulatory risks. The Adani Group responded to the charges by denying the accusations, calling them baseless, and promising to pursue all available legal options. The group reaffirmed its dedication to upholding strict governance, transparency, and regulatory compliance requirements in every jurisdiction.