Adani Green To Raise $2 Billion Through Bonds, Loans

Adani Green Energy, India's largest private renewable power company, is planning to raise around USD 2 billion in multiple tranches over the coming months through international bonds and loans, according to media sources.

The company is set to enter the bond market within days, beginning with a USD 600 million issuance. Last month, Adani Green postponed a USD 1.2 billion bond offering as geopolitical tensions prompted investors to demand higher yields. Previously, the company had proposed a 7 per cent fixed coupon for its 20-year bonds, but current pricing is expected to be higher due to rising US Treasury yields.

Adani Green aims to secure funds for its Rajasthan-based wind and solar energy subsidiaries. Unlike the earlier plan involving four subsidiaries, the upcoming issuance will cover three, while discussions for a private placement for the fourth subsidiary are underway. The private deal, likely for a 20-year term, could conclude by early 2025.

The company recently signed a USD 3.4 billion construction framework agreement with banks, including DBS, Mizuho, SMBC, MUFG, and others, for long-term project financing. Plans are underway to expand the framework to USD 5 billion. Additional tranches of USD 300 million and USD 550 million are also expected for construction finance in the coming months.

These fundraising efforts align with Adani Green’s ambitions to operationalise more capacity in its Khavda project, a 30 GW solar park claimed to be the world’s largest renewable energy facility. As of September 2024, 2.2 GW of the park is operational.

With an existing operational portfolio of 11.18 GW and a target of 50 GW by 2030, Adani Green continues to expand its renewable energy footprint. In the September quarter, the company reported a 20 per cent rise in revenue to Rs 2,309 crore and a 39 per cent jump in net profit to Rs 416 crore. Recent capacity additions of 2,868 MW include 2,000 MW of solar and 450 MW of wind energy.