Adani Green Energy has redeemed $750 million in holdco notes that were issued in September 2021 for a time frame of three years to give AGEL a financial boost
Adani Group’s renewable energy arm Adani Green Energy (AGEL) has completed redemption of $750 million in holdco notes due on September 8, 2024. The company said in a statement released on Monday that it has used its cash reserves and a fully funded redemption reserve account to conclude the redemption of 4.375 per cent holdco notes.
The company began setting aside money in January 2024 so that upon reaching the due date, it has sufficient funds to redeem the holdco notes.
“AGEL's overall capital management philosophy has remained focused on long-term value creation through asset development and positioned AGEL as a self-propelled growth engine. It also emphasizes the structured approach to accomplish credit metrics akin to an investment grade profile for its underlying debt capital raise program,” the company said in a statement on September 9.
Additionally, the company said the capex programme of the AGEL is fully funded from surplus proceeds from operating assets coming from the under-construction projects’ requirements.
The holdco notes that the company has redeemed were issued in September 2021 for a time frame of three years to give a financial boost to its green arm. During this period, AGEL increased its capacity nearly three times, from 3.5 GW to 11.2 GW, witnessing a compounded annual growth rate (CAGR) of 48 per cent.
AGEL is India's largest renewable energy company and develops, owns and operates utility-scale grid-connected solar, wind, hybrid and hydro-pumped storage renewable power plants. The company has an operating renewable portfolio of 11.2 GW, the largest in India, spread across 12 states. Moreover, it has set a target of achieving 50 GW by 2030, aligned to India's decarbonisation goals.
With inputs from PTI.