Adani Inexperienced Power raises $750 mn for under-construction pipeline

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Adani Green Energy Ltd. (AGEL) announced Thursday that it has raised $ 750 million to fully meet the equity needs for its pipeline under construction. The fully funded pipeline is well on its way to becoming the world’s largest renewable energy platform by 2030, according to the company.

In an official statement, Adani Green Energy said it raised its first ListCo senior offering of $ 750 million through a three-year 144A / Reg S format at a fixed coupon of 4.375 percent. This was the first bond issue by ListCo, Adani Green Energy, after successful issues of its subsidiaries RG1 and RG2 in 2019

Adani Green Energy has stated that the issue was oversubscribed 4.7 times.

“The 4.7x oversubscription of this offering is a testament to the confidence global investors have in the fastest growing renewable energy platform and Adani’s ability to build a world-class clean energy company,” said Vneet S. Jaain, MD and CEO, AGEL. “This ListCo Senior Green Bond issue is another landmark transaction for AGEL that fully funds our project pipeline and reaffirms our commitment to being a sustainability-focused global infrastructure platform.”

Adani Green Energy now has a total order backlog of $ 3.5 billion. According to the company, the order book is made up of an all-round participation of “Real Money Investors”, which comprises 48% from Asia, 28% from Europe, the Middle East and Africa and 24% from North America.

The company has stated that the funds generated will be used to finance the equity investments for underlying renewable projects under construction. “Under the Structure, AGEL has up to $ 1,700 million (including the current issue) to draw over time, subject to the structure’s covenants. The bonds were rated Ba3 (stable) by Moodys, ”said Adani Green Energy in an official statement.

Previously, Adani Green Energy had entered into a $ 1.35 billion revolving building framework agreement for the priority debt financing of projects under construction. The company stated that it had completed the ListCo $ 750 million issue.

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