Adani Green Energy said on Monday that the company has completed the redemption of all outstanding USD 750 million Holdco Notes. These notes bear an interest rate of 4.375 percent and were due on September 8, 2024.
In January 2024, AGEL announced it would fully backstop these Holdco Notes. The company had created a fully funded redemption reserve account eight months before the redemption date. Consequently, AGEL ensured it could meet its redemption requirements fully and in compliance with the relevant guidelines.
Initially issued in September 2021, these Holdco Notes have been crucial for AGEL’s growth. Over the past three years, AGEL’s capacity has expanded from 3.5 GW to 11.2 GW, reflecting a compounded annual growth rate of 48 percent. This growth underscores AGEL’s commitment to long-term value creation through strategic asset development.
Additionally, AGEL has emphasized its disciplined approach to managing credit metrics. The company has aimed for an investment-grade profile in its debt capital raise program. This strategy has consequently strengthened AGEL’s financial stability, supporting its ongoing growth.
Moreover, AGEL emphasized its commitment to capital market issuance particularly suited for the long-term infrastructure asset class. In return, it would provide them with a robust and predictable stream of cash flow which would be commensurate with the very long lives of the relevant assets.
Over the years, AGEL has refined its Capital Management Plan significantly. The company’s portfolio is now ‘seasoned,’ and its operational assets are of high quality. This robust base supports ongoing development and construction projects. Surplus cash from these assets funds the projects under construction. As a result, AGEL’s capital expenditure program remains fully funded at all times.
The promoters of AGEL have committed to subscribe to preferential warrants of Rs 9,350 crore in December 2023. Out of this, Rs 7,013 crore (approximately USD 835 million) will be available with AGEL for use per any accelerated Capex requirement. This substantial equity infusion will further strengthen the financial position of AGEL and support its growth initiatives.
AGEL management informed that it feels grateful to all of its investors. And lenders for whom trust and belief were laid upon it. Furthermore, it recognized its vendor partners, which include Adani Infra (India) Ltd and Adani Infra Management Services Ltd. Their incessant support has been one of the major driving factors for AGEL’s accelerated growth plan.
These latest developments will keep AGEL right on target in its ambitious agenda of reaching the threshold of 50 GW renewable energy capacity by the year 2030. The successful redemption of the Holdco Notes is a very important event in its journey towards becoming a leading renewable energy player.
The strategic financial management and good growth plans at AGEL have set a continuous tone of success. And the redemption of the USD 750 million Holdco Notes is yet another gesture from the firm to signal its intentions of maintaining strong financial underpinnings to advance its goals in the Renewable Energy sector.
ANI
