Tuesday, May 17, 2022

Adani Green Energy raises Rs 612.30 crore for debt refinancing

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  • The proceeds from the NCDs will be utilised to part-refinance existing rupee term loan bearing higher interest cost
  • The NCDs will be listed on the Wholesale Debt market segment of BSE Limited

Ahmedabad: Three subsidiaries of Adani Green Energy Ltd – Adani Green Energy (UP) Ltd, Prayatna Developers Pvt Ltd and Parampujya Solar Energy Pvt Ltd, which collectively house 930 MW of operational solar power projects — have raised Rs 612.30 crore by their maiden domestic bond issuance, on private placement basis for debt refinancing, said Adani Green Energy in a statement on Friday.

Proceeds to be used for debt refinancing: Adani Green Energy

“The Rated, Listed, Secured, Redeemable, Non-Convertible Debentures (NCDs) of face value of Rs 10,00,000 each, in multiple series, have an average annualised coupon rate of 7.83 percent pa (fixed) and a tenure upto ~12 years. The proceeds from the NCDs will be utilised to part-refinance existing rupee term loan bearing higher interest cost. The NCDs are rated AA/Stable by CRISIL Limited and AA(CE)/Stable by India Ratings. The NCDs will be listed on the Wholesale Debt market segment of BSE Limited,” said the statement.

‘Optimisation of cost of borrowing key to capital management’

“Optimisation of the cost of borrowing is key to our capital management programme and this transaction reinforces the company’s strategy,” said Vneet S Jaain, MD & CEO of Adani Green Energy Ltd. “We are encouraged by the robust support from the finance community, which recognises the strength of the Company’s business model and our capital management approach. We could manage this fund raising at favourable terms. This puts the company on a more solid platform for long-term growth,” he added.

The success of the domestic debt market issue will open up a new source of funding, allowing for more flexibility in capital structure while also lowering interest costs.

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