Adani Green Energy Completes Redemption of $750M Holdco Notes Early

Adani Green Energy has fully redeemed its $750 million Holdco Notes ahead of schedule, bolstering its capacity growth and financial strategies. The move underscores AGEL's commitment to long-term value creation and positions it for continued growth and investment in renewable energy projects.

Adani Green Energy announced on Monday that it has completed the redemption of all outstanding USD 750 million 4.375 per cent Holdco Notes due September 8, 2024. This follows the company's earlier plan, disclosed in January 2024, to set up a fully funded redemption reserve account eight months prior to maturity, ensuring compliance with all guidelines.

The Holdco Notes, issued in September 2021, have been instrumental in supporting AGEL's rapid expansion. Over the last three years, the company has grown its capacity from 3.5 GW to 11.2 GW, achieving an impressive 48 percent CAGR. AGEL emphasized its focus on creating long-term value through asset development, establishing itself as a key player in renewable energy.

AGEL also reiterated its commitment to tailoring capital market issuances for long-term infrastructure, supported by stable cashflows. The company's matured Capital Management Plan has enabled AGEL to maintain a balanced portfolio of operational and developing assets. The infusion of surplus cash from completed projects ensures that AGEL's capex program remains fully funded.

In December 2023, AGEL's promoters agreed to subscribe to a preferential warrant amounting to Rs 9,350 Cr, with Rs 7,013 Cr (USD 835 million equivalent) allocated for accelerated capital expenditure. The company extended thanks to its investors, lenders, and vendor partners for their support in achieving its growth targets, setting the stage to reach 50 GW of renewable energy capacity by 2030.

(With inputs from agencies.)