Adani Green Energy Ltd (AGEL), India’s largest renewable energy company, has announced its first ListCo senior issuance of USD 750 million over a 3-year 144A / Reg S format with a fixed coupon of 4.375% . The issue was 4.7 times oversubscribed. This issue establishes AGEL as India’s leading credit in the renewable energy sector with a robust and well-defined capital management plan.
The funds will be used to equity fund investments for underlying renewable projects under construction by AGEL. Under the structure, AGEL may draw up to USD 1,700 million (including the current issue) over time, subject to the covenants of the structure. The bonds were rated Ba3 (stable) by Moodys.
Earlier this year, AGEL signed a $ 1.35 billion revolving master building agreement for the priority debt financing of construction projects. With this $ 750 million ListCo issue, AGEL has completed the final phase of its capital management plan and now has a fully funded debt and equity program with a stated goal of 25 GW by 2025.
“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 and fully funds our project pipeline and reaffirms our commitment to be a sustainability-driven global infrastructure platform “largest company for renewable energies by 2030.”
In line with the Adani Group’s energy mix shift, AGEL has grown rapidly and has consistently demonstrated the strength of the company’s clean energy business model and commitment to global ESG benchmarks. It follows the guiding principles of the United Nations Sustainable Development Goals, the United Nation Global Compact and the Science Based Targets Initiative. AGEL will also ensure compliance with global disclosure best practices, which are aligned with TCFD recommendations, GRI standards and CDP disclosures.
Top external agencies have confirmed AGEL’s green framework. Vigeo Eiris, a subsidiary of Moody’s Investor Service, has issued a second opinion in favor of AGEL’s green framework and KPMG has provided independent confirmation on this.
The Joint Lead Managers (JLMs) of the issue were Axis Bank, Barclays, BNP Paribas, DBS Bank Ltd., Emirates NBD Capital, IMI-Intesa Sanpaolo, MUFG, Mizuho Securities, SMBC Nikko and Standard Chartered Bank. The JLMs were represented by Linklaters and Talwar Thakore & Associates. The issuer was represented by Latham & Watkins and Cyril Amarchand Mangaldas. MUFG Bank acted as Lead Green Structuring Advisor and Standard Chartered Bank as Cogreen Structuring Advisor.
The shares of Adani Green Energy Limited were last denominated in BSE at Rs. 1078.75 compared to the previous closing price of Rs. 1066.85. The total number of stocks traded during the day was 20144 in over 1496 trades.
The stock hit an intraday high of Rs. 1099.95 and an intraday low of 1065.1. Net sales during the day were Rs. 21,918,620.