Adani Green secures USD 400 mn from international banks for 750 MW power projects
May 02, 2024
Ahmedabad (Gujarat) [India], May 2 : Adani Green Energy Ltd (AGEL) announced on Thursday that it has secured USD 400 million in financing from a consortium of five international banks for its 750 MW solar projects in Rajasthan and Gujarat.
According to a company statement, the projects are expected to commence operations from November 2024 onwards.
One of the projects is being developed in Rajasthan with 500 MW capacity and has a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI), the statement said.
The second project, with 250 MW capacity, is a standalone merchant power project being implemented at the world's largest renewable energy (RE) cluster in Khavda, Gujarat.
The consortium of lenders includes Cooperative Rabobank U.A., DBS Bank Ltd., Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation.
"With confidence in the evolving merchant energy market, AGEL is diversifying revenue streams, along with traditional PPAs, to enhance project revenue and position itself favorable for sustained value creation. Following AGEL's lead, banks are becoming more comfortable with financing merchant projects with the transaction marking a sentiment shift in the international banking market," the statement said.
The green loan, housed under subsidiaries of AGEL supports the company's growth trajectory and aligns with its commitment to sustainability, it said.
The USD 400 million construction facility along with the funding solutions also provides the syndicated guarantee-backed assurance program in sync with AGEL's procurement strategy. The transaction paves the way for a sustainable debt structure, developed as part of AGEL's capital management plan, for financing merchant exposure, the statement said.
"It marks a milestone for the Indian RE sector as it steers the industry's transition to the next phase of market integration, with the commitment to deliver the low-cost green electrons through promotion of merchant market projects with right financing structure demonstrating overall trust and competitiveness for the Indian renewable energy sector to drive clean energy transition and decarbonisation," the company said.
AGEL has 10,934 MW operational portfolio, largest in India, delivering reliable, affordable, and clean power to the national grid. AGEL's operational portfolio consists of 7,393 MW solar, 1,401 MW wind and 2,140 MW wind-solar hybrid capacity, it said.
