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Adani Green Energy In Advanced Talks For $400 Million Loan To Fuel Growth, Says Report

Adani Green Energy is reportedly in advanced discussions with Rabobank, MUFG, SMBC, and DBS for a $400 million loan

Adani Group
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Adani Green Energy is reportedly in advanced talks to secure a $400 million loan as it plans to hit its ambitious target of a 25-gigawatt portfolio by 2025. It is in discussions with Rabobank, MUFG, SMBC, and DBS for funding. The loan, having a five-year tenure, is likely to come with a pricing structure of secured overnight financing rate (SOFR) plus 250 basis points.

According to a report by the Economic Times, Adani Group's renewable energy arm is planning to use this loan for capital expenses. The company is also gearing up to issue a $1.3 billion bond after the general elections. This comes after the Adani Green became the first entity under the group to raise funds through a dollar note sale, post the damning Hindenburg report, released last year. The issue was oversubscribed nearly seven times. 

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"Adani Green had raised $409 million through an 18-year senior secured green bond, which garnered significant investor interest and was oversubscribed seven times. Now, the company is preparing to launch a larger bond issuance, capitalising on the strong investor demand," sources cited in the report said.

"The new fundraising will happen under 144 Reg S and could commence after the ongoing elections."

Adani Green Energy's operational portfolio includes 7,393 MW of solar capacity, 1,401 MW of wind capacity, and 2,140 MW of wind-solar hybrid capacity. The company is in the process of developing a massive renewable energy project spanning 30,000 MW on 538 square kilometers of barren land in Khavda, Kutch, Gujarat. 

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It has also secured projects totaling 21.8 GW and boasts the largest operating renewable portfolio in India, spanning nearly 10.9 GW across 12 states.

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