| Work Detail |
Adani Green Energy Limited (AGEL) has unveiled a comprehensive plan for the redemption of its USD 750 million 4.375 notes due on September 9, 2024, termed as the Holdco Notes. This redemption plan, announced today, guarantees the complete coverage of outstanding amounts through various reserve accounts. The plan outlines specific sources that will secure the outstanding amounts of the Holdco Notes: Reserve Accounts and Internal Accruals: An amount totaling USD 169 million, inclusive of the Debt Service Reserve Account, Hedge Reserves, and Interest on Reserve Account, has been designated for this purpose. TotalEnergies 1,050 MW JV Consideration: A transaction completed on December 26, 2023, has contributed USD 300 million, currently held in the Senior Debt Redemption Account (SDRA) of the Holdco notes. Proceeds from Initial Tranche of the Promoter Preferential Allotment: Expected to be approximately USD 281 million (equivalent to INR 2,338 crores), this sum is anticipated to be received by the end of January 2024 and will be deposited into the Senior Debt Redemption Account (SDRA) of the Holdco notes.The collective amount from these sources totals USD 750 million, effectively ensuring the full security of the Holdco Notes eight months prior to their maturity date. This proactive measure by AGEL marks the complete defeasance of the Holdco Notes, significantly reducing debt while maintaining focus on growth initiatives. This redemption strategy is bolstered by AGEL’s successful equity capital raise program, which garnered USD 1.425 billion. This includes USD 1.125 billion from preferential issuances by promoters and USD 300 million from the TotalEnergies JV. The success of this capital raise signifies robust investor interest and strategic partnerships, demonstrating a firm commitment to AGEL’s ambition of achieving 45 GW by 2030. |
