Adani Green Energy completes redemption of $750 million Holdco Notes

Adani Green redeems $750 mn bonds eight months ahead of redemption date

Adani Green Energy Ltd (AGEL) announced today that it has successfully redeemed all outstanding $750 million Holdco Notes, which carried an interest rate of 4.375 percent. The redemption was executed through a fully funded redemption reserve account established well in advance of the notes’ maturity.

The Holdco Notes, issued in September 2021 with a three-year term, played a crucial role in supporting AGEL’s ambitious growth strategy. The company stated that the proceeds from the notes were instrumental in propelling its expansion, which has seen its capacity surge from 3.5 GW to 11.2 GW—representing a compounded annual growth rate (CAGR) of 48 percent.

“Having achieved our accelerated growth targets, we are now redeeming the Notes with cash rather than opting for refinancing,” said an AGEL spokesperson. The company highlighted that its strong cash flows from operational assets, coupled with a construction facility framework agreement, have sufficiently funded its capital expenditure program, which aims to reach a 50 GW capacity by FY30.

Additionally, AGEL’s capital management strategy has been bolstered by a significant commitment from its promoters. In December 2023, they agreed to a preferential warrant subscription worth Rs.9,350 crore (approximately $1.1 billion). Of this, Rs.7,013 crore (about $835 million) is allocated to AGEL for potential accelerated capital expenditure.

The company’s approach to capital management continues to focus on long-term value creation through asset development, establishing AGEL as a dynamic force in the renewable energy sector. AGEL currently boasts the largest operational renewable portfolio in India, with 11.2 GW spread across 12 states.

The successful redemption of the Holdco Notes underscores AGEL’s robust financial health and commitment to sustainable growth, reinforcing its position as a leader in the renewable energy landscape.

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