Adani Green raises $ 288 million Construction Facility, increases construction revolver pool to $ 1.64 billion
Ahmedabad, March 21, 2022
Adani Green Energy Ltd (AGEL), a part of the Adani Group, today said it had extended its Construction Financing Framework to $ 1.64 billion by raising a $ 288 million facility for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders.
The facility will initially finance the 450 MW hybrid portfolio of solar and wind renewable projects that AGEL is setting up in Rajasthan, India, a press release from the company said.
In March 2021, AGEL had closed a $ 1.35 billion construction revolver facility in one of Asia’s largest project financing deals.
According to the definitive agreements, seven international banks – BNP Paribas, Coöperatieve Rabobank U.A., Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation – committed for the facility which is a certified green hybrid project loan.
"The extended pool of liquidity strengthens AGEL’s strategy to fast-track the development of its under-construction asset portfolio in sync with accelerating the energy transition," the release said.
“The construction facility is the key ingredient of AGEL’s capital management plan, enabling us to deliver on our focus on decarbonizing power generation” said Vneet S Jaain, MD & CEO, AGEL.
“We are committed to sustainable growth and to catalyzing energy transition. AGEL has set a target of achieving 45 GW renewable energy capacity by 2030, representing 10% of the Government of India’s 450GW countrywide renewable energy target. Our development agenda is in sync with overall capital stewardship maintained through our capital management philosophy focused on sustainable growth," he added.
According to the release, underpinning AGEL’s infrastructure development is the project excellence framework that follows the highest standard of due diligence covering all international standard Environment, Social and Governance (ESG) aspects.
"AGEL is committed to the UN Sustainable Development Goals (SDGs) and has incorporated them into the Strategic Pillars of its ESG Strategy. AGEL’s sustainability roadmap is aligned with the goals of ensuring universal access to affordable, reliable and modern energy services and to substantially increasing the share of renewable energy in the global energy mix," it said.
The facility is also certified by Second Party Opinion provider ISS ESG based on AGEL’s sustainable strategy, alignment with Green Loan Principles and sustainability quality of the asset pool, with "very high" transparency standards and significant contributions to SDG 7 (affordable and clean energy) and SDG 13 (climate action). As per the assessment, AGEL shows a high sustainability performance on key ESG issues in the Renewable Energy industry, representing the highest relative ESG performance, the release said.
Standard Chartered Bank acted as Mandated Lead Arranger, Bookrunner (MLAB), Documentation Bank and E&S Co-Ordinator bank. MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation acted as MLABs, jointly acted as Co-Technical Advisors and Co-Green Loan Advisors. Further, BNP Paribas, Coöperatieve Rabobank U.A., Intesa Sanpaolo S.p.A. and Societe Generale each acted as MLABs for the Facility.
Among other partners, Latham & Watkins LLP and Saraf & Partners were the borrower’s counsel. The lenders’ counsel were Linklaters and Cyril Amarchand Mangaldas.
AGEL has one of the world’s largest renewable portfolios, with locked-in growth of 20.4 GW across operational, under-construction, awarded and acquired assets, catering to investment-grade counterparties. The company develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects. Key customers of AGEL include Solar Energy Corporation of India (SECI), National Thermal Power Corporation (NTPC) and various State Discoms.
Listed in 2018, AGEL today is a $ 39 billion market cap company.