Adani Green Energy (AGEL) has raised Rs 612.30 crore through its three subsidiary companies - Adani Green Energy (UP), Prayatna Developers, and Parampujya Solar Energy to refinance existing debts.
The fund has been raised by the maiden domestic bond issuance of the three entities -- collectively housing 930 MW of operational solar power projects -- and on a private placement basis, the company announced on Friday.
The rated, listed, secured, redeemable, non-convertible debentures (NCDs) of the face value of Rs 10,00,000 each, in multiple series, have an average annualized coupon rate of 7.83 per cent p.a. (fixed) and a tenure up to 12 years. The proceeds from the NCDs will be utilized to part-refinance existing rupee term loans bearing higher interest costs. The NCDs are rated AA/Stable by CRISIL and AA(CE)/Stable by India Ratings. The NCDs will be listed on the wholesale debt market segment of BSE.
Optimization of the cost of borrowing is key to our capital management program and this transaction reinforces the company's strategy, according to Vneet S Jaain, Managing Director AND Chief Executive Officer of AGEL. "We are encouraged by the robust support from the finance community, which recognizes the strength of the company's business model and our capital management approach," said Jaain.
"The company has been able to manage this fundraising at favorable terms which AEGL 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.
Adani Green Energy develops, builds, owns, operates, and maintains utility-scale grid-connected solar and wind farm projects. It has one of the largest global renewable portfolios with an overall portfolio of 20.3 GW1 including operating, under-construction, awarded, and assets under acquisition catering to investment-grade counterparties.
( With inputs from ANI )
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