Adani Green Energy Ltd. (AGEL), announced Thursday that it raised $750 million in equity to fully finance its pipeline construction. According to the firm, the fully-funded pipeline will be the largest renewable energy platform in the world by 2030.
Adani Green Energy announced that it had raised $750 million in its maiden ListCo senior issue. This was done through a three year issuance under 144A/RegS format with a fixed coupon at 4.375 per cent. After the successful issuances of its subsidiaries RG1 in 2019 and RG2, this was Adani Green Energy’s first bond issuance.
Adani Green Energy explained that the issuance was 4.7x oversubscribed.
“The 4.7X oversubscription to this issuance is a testimony to the confidence of global investors, the world’s fastest-growing Renewable Energy platform, and Adani’s ability to set up an international class clean energy business,” stated Vnet S Jaain (MD and CEO of AGEL). “This ListCo Senior Green Bond is another landmark transaction for AGEL. It fully funds our pipeline and reinforces our commitment to being a global infrastructure platform that is sustainable.
Adani Green Energy has a $3.5 billion order book. According to Adani Green Energy, the order book includes all-around participation by “Real Money Investors”, which include 48% from Asia and 28% each from Europe, Middle East, Africa, and 24% from North America.
According to the firm, funds will be used for equity financing of capex for under-construction renewable projects. AGEL is allowed to draw upto $1.700 million, including the current issuance, under the structure. This is subject to the covenants. Adani Green Energy stated in an official statement that the notes were rated as Ba3 (Stable).
Adani Green Energy had earlier completed the tie up of a $1.35 Billion revolving construction framework arrangement to provide senior debt financing for construction stage projects. With the $750 million ListCo issue, the firm said that it had completed the final phase in its capital management plan and has a fully-funded program of equity and debt to reach its stated goal of 25 GW by 2020.