Adani Green Energy (AGEL), the renewable energy arm of Adani Group, intends to raise about $5 billion through global bonds for its proposed capacity addition of another 25 gigawatts (GW) by 2030. The fund raising would be in tranches, starting with this financial year, and over the next few years.
The plan is to raise the funds only through international bonds and there are no plans to raise funds by issuances of shares. The plan to raise funds through bonds is because of easy availability of long-term capital at lower cost and bullet payment options, sources close to the development said.
The company would start roadshows in this fiscal across countries like the US, the UK and Europe.
With the plans to raise the funds in tranches, shareholders and other approvals would be obtained “as and when needed”, they added.
At present, the company helmed by Gautam Adani has 8,316 megawatts (8.3 GW) of operational renewable energy capacity, while another 12,118 MW is either nearing completion. AGEL intends to take this total 20,434 MW to 45,000 MW (45 GW) by 2030, with it looking to build a minimum 3 GW of capacity to generate electricity from solar and wind energy each year.
The firm is also evaluating newer places to set up facilities to build wind projects, even as it has installed many wind masts in Gujarat and Madhya Pradesh. AGEL has a total wind power operational capacity of 1,201 MW.
French energy giant TotalEnergies holds a 19.7% stake in AGEL. Recently US investment firm GQG Partners picked a 6.8%stake in the company and Qatar Investment Authority (QIA) another 2.8%.
As of March 31, 2023, the Adani Group’s debt stood at Rs 2.27 trillion, of which 39% was in bonds, 29% loans from international banks and 32% with Indian banks and NBFCs. The gross value of the group’s assets was at Rs 3.91 trillion.
India has a target of reaching 500 GW of installed power generation capacity through non-fossil sources. The country aims to achieve net zero by 2070.