AHMEDABAD, India, March 18, 2021 / PRNewswire / – Adani Green Energy Limited (AGEL) has raised a 1.35 billion dollars debt package for its portfolio of renewable assets under construction through definitive agreements signed with a group of leading international credit institutions. The revolving project financing facility would initially finance the 1.69 GW hybrid portfolio of renewable solar and wind projects to be set up in four special purpose vehicles in the state of Rajasthan, India.
Under the agreement, 12 international banks – Standard Chartered Bank, Intesa Sanpaolo SpA, MUFG Bank, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank UA, DBS Bank Ltd., Mizuho Bank, Ltd., BNP Paribas, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank NV have committed to the facility which will be India’s first certified green hybrid project loan. The new liquidity pool strengthens AGEL’s strategy to fully finance its asset under construction and bodes well for its vision of increasing capacity to 25 GW by 2025.
Structure is an important element of AGEL’s overall capital management plan and is key to fully funding its growth aspirations. The final agreement establishes a funding framework of agreed principles and procedures under which AGEL will engage with funders to efficiently and quickly raise funding for all future projects according to agreed threshold parameters.
The facility emphasizes the general development philosophy of the Adani portfolio companies implemented through an in-house developed project excellence framework, committed to following equatorial principles and the highest standards of due diligence covering all environmental, social and governance aspects (ESG) international standards.
Speaking of this development, Mr. Vneet Jaain, MD and CEO, AGEL, said, “We see this as yet another confirmation of our ability to execute in renewable space. We are committed to producing the least expensive green electron and the pace and scale we have taken puts us a long way on this path. We believe that establishing the depth and diversity of our funding resources are key to AGEL’s vision of becoming the largest player in the world of renewable energy. The banks that have engaged in this strategic transaction are our key partners in ensuring seamless access. of continuity to global capital for our underlying renewable asset portfolio. The facility will also ensure banks’ capital recycling needs and make the same capital available for AGEL’s future projects. This revolving nature of the facility will help AGEL achieve its target of a 25 GW portfolio by 2025. In addition, AGEL positions well to capture growth in India’s attractive renewable energy sector. ”
Each of the loan partners who signed up for this facility played a distinct role. Standard Chartered Bank, for example, acted as lead, Mandated Lead Arranger, Bookrunner (MLAB), environmental due diligence consultant, co-documentation bank, and co-green loan coordinator for the facility. Likewise, MUFG Bank played the role of MLAB, technical bank and co-green lending coordinator. In addition, BNP Paribas acted as MLAB, co-documentation DBS Bank Ltd acted as MLAB, bank accounts and Mizuho was MLAB, financial model bank. Intesa Sanpaolo SpA, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank UA, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank NV acted as MLAB for the facility.
Among other partners, while Latham & Watkins LLP and Luthra & Luthra were the borrower’s advisors, the lenders’ advisers were Linklaters and Cyril Amarchand Mangaldas. Tractebel Engineering Private Limited acted as the technical advisor to the lender, UL acted as a consultant for the assessment of the energy performance of the lenders, ERM acted as the environmental and social advisor to the lenders, Arcadis acted as an environmental due diligence consultant and social of lenders, Deloitte acted as financial model audit consultant, Marsh acted as lenders insurance agent and KPMG acted as independent insurance provider for the green loan.
About Adani Green Energy Limited
Adani Green Energy Limited (“AGEL”), a part of Indiaheadquartered in Adani Group, it has one of the largest renewable portfolios in the world with over 14,815 MW of projects in operation, under construction and awarded to investment-grade counterparties. The company develops, builds, owns, manages and maintains grid-connected wind and solar farm projects on an industrial scale. AGEL’s major customers include the National Thermal Power Corporation (“NTPC”) and the Solar Energy Corporation of India (“SECI”) and various state inconveniences. Listed in 2018, AGEL today is a 25.03 billion dollars market cap company that helps India meet her COP21 aims. This financial year, Mercom Capital, the US-based think tank, ranked the Adani Group as the first owner of solar power generation assets in the world. For more details: www.adanigreenenergy.com
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SOURCE Adani Green Energy Ltd