Adani Green Energy (AGEL), the renewable energy company of Adani Group, on Thursday said it has raised $400 million from a consortium of five leading international banks.
The consortium includes Cooperative Rabobank, DBS Bank, Intesa Sanpaolo, MUFG Bank and Sumitomo Mitsui Banking Corporation.
The financing is for under-construction 750 MW solar projects in Rajasthan and Gujarat, which are expected to come online from November, AGEL said.
One of the projects is being developed in Rajasthan with 500 MW capacity and has a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI). The second one, with 250 MW capacity, is a standalone merchant power project being implemented at the world’s largest RE cluster at Khavda in Gujarat.
The $400 million construction facility along with the funding solutions also provides the syndicated guarantee-backed assurance program in sync with AGEL’s procurement strategy, it said.
“The transaction paves the way for a sustainable debt structure, developed as part of AGEL’s capital management plan, for financing merchant exposure. It marks a milestone for the Indian RE sector as it steers the industry’s transition to the next phase of market integration, with the commitment to deliver the low-cost green electrons through promotion of merchant market projects with right financing structure demonstrating overall trust and competitiveness for the Indian renewable energy sector to drive clean energy transition and decarbonisation,” AGEL said.
AGEL has 10,934 MW operational portfolio, and consists of 7,393 MW solar, 1,401 MW wind and 2,140 MW wind-solar hybrid capacity.
Latham & Watkins LLP and Saraf & Partners were the borrower’s counsel. The lenders’ counsel were Linklaters and Cyril Amarchand Mangaldas.
In another transaction in renewable space, Avaada Energy, the renewable energy arm of Avaada Group, on Thursday said it has secured debt of about Rs 1,190 crore from State Bank of India.
This financing will support the development of a 400 MWp utility-scale solar PV power project in the Surendra Nagar district of Gujarat. The entire power generated from the project will be procured by Gujarat Urja Vikas Nigam (GUVNL), an apex body of the Gujarat government engaged in the bulk purchase and sale of electricity.
This transaction marks Avaada’s first endeavour in developing a greenfield project under an existing special purpose vehicle (SPV). The strategic arrangement will enable the organisation to optimise its capital structure and simplify the ownership structure of its project subsidiaries, demonstrating Avaada’s approach to managing and expanding its renewable asset base, it said
The financing from SBI, sanctioned and disbursed as a 20-year project loan facility, was obtained at competitive terms, showcasing Avaada’s strong project financing capability.
“This partnership not only reflects our strategic vision to build a diverse and high-quality portfolio of energy transition assets but also highlights the trust and commitment of leading financial institutions to support renewable energy projects with stable, long-term cash flows.,” Vineet Mittal, chairman of Avaada group, said.